Study

on Consumer

behavior at Tata Motors for Nano

INTRODUCTION

Introduction
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Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. [1] It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the decision-making processes of buyers, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people s !ants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. "ustomer behaviour study is based on consumer buying behaviour, !ith the customer playing the three distinct roles of user, payer and buyer. #esearch has sho!n that consumer behaviour is difficult to predict, even for experts in the field.[$] #elationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. % greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing. &ocial functions can be categorized into social choice and !elfare functions. 'ach method for vote counting is assumed as social function but if %rro!(s possibility theorem is used for a social function, social !elfare function is achieved. &ome specifications of the social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity and !eak and strong )areto optimality. *o social choice function meets these re+uirements in an ordinal scale simultaneously. ,he most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation !ith the ranks. -arketing provides services in order to satisfy customers. .ith that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle, the consumer

Black box model ENVIRONMENTAL FACTOR B!"ER# BLAC$ BO%

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B!"ER#

RE &ON E Marke'in( 'imuli Environmen'al 'imuli Bu)er Charac'eris'ics *ecision &rocess )roblem 'conomic )roduct )rice )lace )romotion ,echnological )olitical "ultural /emographic *atural %ttitudes -otivation )erceptions )ersonality 0ifestyle 1no!ledge recognition Information search %lternative evaluation )ost-purchase )roduct choice 2rand choice /ealer choice )urchase timing amount

)urchase decision )urchase

behaviour ,he black box model sho!s the interaction of stimuli, consumer characteristics, decision process and consumer responses.[3] It can be distinguished bet!een interpersonal stimuli 4bet!een people5 or intrapersonal stimuli 4!ithin people5. [6] ,he black box model is related to the black box theory of behaviourism, !here the focus is not set on the processes inside a consumer, but the relation bet!een the stimuli and the response of the consumer. ,he marketing stimuli are planned and processed by the companies, !hereas the environmental stimulus are given by social factors, based on the economical, political and cultural circumstances of a society. ,he buyers black box contains the buyer characteristics and the decision process, !hich determines the buyers response. ,he black box model considers the buyers response as a result of a conscious, rational decision process, in !hich it is assumed that the buyer has recognized the problem. 7o!ever, in reality many decisions are not made in a!areness of a determined problem by the consumer. In+orma'ion search 8nce the consumer has recognised a problem, they search for information on products and services that can solve that problem. 2elch and 2elch 4$99:5 explain that consumers undertake both an internal 4memory5 and an external search. &ources of information include;

)ersonal sources "ommercial sources )ublic sources

4

)ersonal experience

,he relevant internal psychological process that is associated !ith information search is perception. )erception is defined as <the process by !hich an individual receives, selects, organises, and interprets information to create a meaningful picture of the !orld<. "onsumers tendency to search for information on goods and services makes it possible for researchers to forecast the purchasing plans of consumers using brief descriptions of the products of interest.[=] The selec'ive ,erce,'ion ,rocess &tage /escription

&elective exposure consumers select !hich promotional messages they !ill expose &elective attention consumers select !hich promotional messages they !ill pay &elective comprehension consumer interpret messages in line !ith their beliefs, &elective retention consumers remember messages that are more meaningful or

themselves to.

attention to.

attitudes, motives and experiences.

important to them. ,he implications of this process help develop an effective promotional strategy, and select !hich sources of information are more effective for the brand. Evalua'ion o+ al'erna'ives At this time the consumer compares the brands and products that are in their evoked set. The evoked set refers to the number of alternatives that are considered by consumers during the problem-solving process. Sometimes also kno n as consideration ! this set tends to be small relative to the total number of options available. "o can the marketing organisation increase the likelihood that their brand is part of the consumer#s evoked set$ %onsumers evaluate alternatives in terms of the functional and psychological benefits that they offer. The marketing organisation needs to understand therefore hat benefits consumers are seeking and hich attributes are most important in terms of making a decision. &t also

needs to check other brands of the customer's consideration set to prepare the right plan for its o n brand. &urchase decision

8nce the alternatives have been evaluated, the consumer is ready to make a purchase decision. &ometimes purchase intention does not result in an actual purchase. ,he marketing organisation must facilitate the consumer to act on their purchase intention. ,he organisation can use a variety of techni+ues to achieve this. ,he provision of credit or payment terms may encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy no!. ,he relevant internal psychological process that is associated !ith purchase decision is integration. 8nce the integration is achieved, the organisation can influence the purchase decisions much more easily. ,here are = stages of a consumer buying process [>] they are; ,he problem recognition stage, meaning the identification of something a consumer needs. ,he search for information, !hich means you search your kno!ledge bases or external kno!ledge sources for information on the product. ,he possibility of alternative options, meaning !hether there is another better or cheaper product available. ,he choice to purchase the product and then finally the actual purchase of the product.[>] ,his sho!s the complete process that a consumer !ill most likely, !hether recognisably or not, go through !hen they go to buy a product. &os',urchase evalua'ion The )*+ ,)ngel! *ollat! +lack ell- model as further developed by .ice ,1//3hich suggested there should be a feedback loop! 0o1all ,222(- further suggests the importance of the post purchase evaluation and that it is key because of its influences on future purchase patterns.

O'her in+luences "onsumer behaviour is influenced by internal conditions such as demographics, psychographics 4lifestyle5sadam , personality, motivation, kno!ledge, attitudes, beliefs, and feelings. )sychological factors include an individuals motivation, perception, attitude and belief, !hile personal factors include income level, personality, age, occupation and lifestyle. "ongruence bet!een personality and the !ay a persuasive message is framed 4i.e., aligning the message framing !ith the recipient(s personality profile5 may play an important role in
3

ensuring the success of that message. In a recent experiment, five advertisements 4each designed to target one of the five ma?or trait domains of human personality5 !ere constructed for a single product. ,he results demonstrated that advertisements !ere evaluated more positively the more they cohered !ith participants( dispositional motives. [:] ,ailoring persuasive messages to the personality traits of the targeted audience can be an effective !ay of enhancing the messages( impact. 2ehaviour can also be affected by external influences, such as culture, sub-culture, locality, royalty, ethnicity, family, social class, past experience reference groups, lifestyle, market mix factors. ,ata -otors, also listed in the *e! @ork &tock 'xchange 4&eptember $9965, has emerged as an international automobile company. ,hrough subsidiaries and associate companies, ,ata -otors has operations in the A1, &outh 1orea, ,hailand, &pain, &outh %frica and Indonesia. %mong them is Baguar 0and #over, ac+uired in $99C. In $996, it ac+uired the /ae!oo "ommercial Dehicles "ompany, &outh 1orea s second largest truck maker. ,he rechristened ,ata /ae!oo "ommercial Dehicles "ompany has launched several ne! products in the 1orean market, !hile also exporting these products to several international markets. ,oday t!o-thirds of heavy commercial vehicle exports out of &outh 1orea are from ,ata /ae!oo. In $99=, ,ata -otors ac+uired a $1E stake in 7ispano "arrocera, a reputed &panish bus and coach manufacturer, and subse+uently the remaining stake in $99F. 7ispano s presence is being expanded in other markets. In $99>, ,ata -otors formed a =1;6F ?oint venture !ith the 2razil-based, -arcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India - the plant is located in /har!ad. In $99>, ,ata -otors entered into ?oint venture !ith ,honburi %utomotive %ssembly )lant "ompany of ,hailand to manufacture and market the company s pickup vehicles in ,hailand, and entered the market in $99C. ,ata -otors 4&%5 4)roprietary5 0td., ,ata -otors ?oint venture !ith ,ata %frica 7olding 4)ty5 0td. set up in $911, has an assembly plant in #osslyn, north of )retoria. ,he plant can assemble, semi
4

knocked do!n 4&1/5 kits, light, medium and heavy commercial vehicles ranging from 6 tonnes to =9 tonnes. ,ata -otors is also expanding its international footprint, established through exports since 1F>1. ,he company s commercial and passenger vehicles are already being marketed in several countries in 'urope, %frica, the -iddle 'ast, &outh 'ast %sia, &outh %sia, &outh %merica, "I& and #ussia. It has franchiseeG?oint venture assembly operations in 2angladesh, Akraine, and &enegal. ,he foundation of the company s gro!th over the last >> years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customerdesired offerings through leading edge #H/. .ith over 6,=99 engineers, scientists and technicians the company s 'ngineering #esearch "entre, established in 1F>>, has enabled pioneering technologies and products. ,he company today has #H/ centres in )une, Bamshedpur, 0uckno!, /har!ad in India, and in &outh 1orea, &pain, and the A1. It !as ,ata -otors, !hich launched the first indigenously developed 0ight "ommercial Dehicle in 1FC>. In $99=, ,ata -otors created a ne! segment by launching the ,ata %ce, India s first indigenously developed mini-truck. In $99F, the company launched its globally benchmarked )rima range of trucks and in $91$ the Altra range of international standard light commercial vehicles. In their po!er, speed, carrying capacity, operating economy and trims, they !ill introduce ne! benchmarks in India and match the best in the !orld in performance at a lo!er life-cycle cost. ,ata -otors also introduced India s first &ports Atility Dehicle in 1FF1 and, in 1FFC, the ,ata Indica, India s first fully indigenous passenger car. In Banuary $99C, ,ata -otors unveiled its )eople s "ar, the ,ata *ano. ,he ,ata *ano has been subse+uently launched, as planned, in India in -arch $99F, and subse+uently in $911

in *epal and &ri 0anka. % development, !hich signifies a first for the global automobile industry, the *ano brings the ?oy of a car !ithin the reach of thousands of families. ,ata -otors is e+ually focussed on environment-friendly technologies in emissions and alternative fuels. It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment-friendly technologies in manufacturing processes, significantly enhancing resource conservation. ,hrough its subsidiaries, the company is engaged in engineering and automotive solutions, automotive vehicle components manufacturing and supply chain activities, vehicle financing, and machine tools and factory automation solutions. ,ata -otors is committed to improving the +uality of life of communities by !orking on four thrust areas - employability, education, health and environment. ,he activities touch the lives of more than a million citizens. ,he company s support on education and employability is focused on youth and !omen. ,hey range from schools to technical education institutes to actual facilitation of income generation. In health, the company s intervention is in both preventive and curative health care. ,he goal of environment protection is achieved through tree plantation, conserving !ater and creating ne! !ater bodies and, last but not the least, by introducing appropriate technologies in vehicles and operations for constantly enhancing environment care. .ith the foundation of its rich heritage, ,ata -otors today is etching a refulgent future. -is'or) o+ Ta'a Nano %fter having successfully launched the lo! cost ,ata %ce truck in $99=, ,ata -otors began development of an affordable car that !ould appeal to the many Indians !ho drive motorcycles.[6] ,he purchase price of this no frills auto !as brought do!n by dispensing !ith most nonessential features, reducing the amount of steel used in its construction, and relying on lo! cost Indian labor, as !ell as a ne! design concept called Irugal 'ngineering.
[=]

JIrugal 'ngineeringK !as a term coined in $99> by #enault "hief 'xecutive "arlos Lhosen to describe the design process behind the ,ata *ano. ,his type of design concept !as designed to better the those at the bottom of the pyramid.
[>]

7o!ever, J% &tudy on
[:]

"onsumer )erceptions H 'xpectations for ,ata *anoK sho!s that the bottom of the pyramid is not very a!are of !hat they are getting !hen purchasing a ,ata *ano. .hile that paper may seem to focus on the Indian contribution, the *ano !as a truly international effort. J,ata turned to Lermany(s 2osch for a ne! engine-management systemM Italy(s I./. '. %. Institute and ,rilix for styling and exterior designM India(s &ona 1oyo for light!eight steering shaftsM %merica(s Bohnson "ontrols for the seating systemM Bapan(s ,oyo for the engine-cooling Lermany(s 2ehr for the heating, ventilating, and air-conditioning systemM and India(s -adras #ubber Iactory for tougher than normal rear tires.K
[C]

&o to call it the

Indian "ar is understandable, but misleading. ,he *ano is an excellent example of 0%)/. ,he <0%)/ 4lean principle applied product development5 process is implemented !ith utilization of external sources of kno!ledge and utilization of the digital technology that support the product development process in order to complement the !eakness of technological capability.<
[F]

.hile the *ano is engineerd from the bottom up, the existing

economies of scale from other manufactures are not to be ignored. Ior the *ano, ,ata motors chose to <outsource C=E of the *ano(s components and use >9E fe!er vendors than normal to reduce transaction costs and achieve better economies of scale<.[19] ,he introduction of the *ano received much media attention due to its lo! price. Expectations and effects 'xpectations created for the car during the run up to its production may have been out of proportion !ith its realized success. % $99C study, by Indian rating agency "#I&I0, thought the *ano !ould expand the nation s car market by >=E, [1$] but, as of late $91$, ne!s reports have detailed the under!helming response of the Indian consumer to the offeringM sales in the first t!o fiscal years after the car s unveiling remained steady at about :9,999 units although ,ata appears intent on maintaining a capacity to produce the car in much larger +uantities, some $=9,999 per year, should the need arise.[13] It !as anticipated that its $99F debut !ould greatly affect the used car market, and prices did drop $=-39E prior to the launch. [16] &ales of the *ano s nearest competitor, the -aruti C99, fell by $9E immediately follo!ing the unveiling of the *ano.[1=] It is unkno!n if the *ano has had a lasting effect on the prices of and demand for close substitutes, ho!ever. In Buly $91$, ,ata Lroup "hairman, #atan ,ata, said that the car has immense potential in the
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developing !orld !hile admitting that early opportunities !ere !asted due to initial problems.[ Singur factory pullout Tata 6otors announced in 2223 that the 7ano land the ne ould be manufactured in Singur! 8est +engal.914: ;ocal farmers soon began protesting the forced ac<uisition of their factory entailed.914: Tata first delayed the 7ano launch and later decided to build the car in a different state! =u>arat! instead. Gujarat Factory Controversy ,he plant !as moved to Lu?arat after the controversy in &ingur. ,he Lu?arat plant came under severe criticism from sections of society, due to a large amount of soft-loan offered by the Lu?arat government. ,he Lu?arat government offered a loan of #s. F=:9 "rores, !ith a meagre interest rate of 9.1E and !ith the loan to be paid back in $9 years. ,he government also promised to build a four-lane road and give exemption on electricity duty, registration and transfer charges of land. ,he government also promised to put up a !aste disposal plant, supply natural gas through a pipeline and provide 199 acres near %hmedabad for a to!nship. [1F] ,he opposition parties alleged mass corruption in the pro?ect. ,he opposition is also claiming that the pro?ect is actually heavily subsidied by the people to the tune of #s. >9,999 per car, !hich is more than half of the initial offer price of the car.
[$9]

,his subsidization

comes in many forms. ,he farmers !ho agreed to lease their land to ,ata motors found out after!ard that they !ould not receive any compensation. ,he land that government sold to the company !as done so for under half of its market value. ,his is !here the savings lie. [$1] ,his is ?ust another example of a developing country 4or in this case, a state5, paying incentives !hich are too high in the hopes of landing some investment. ,he conservative estimates start at C99 million NA&, !hich is more than ,ata s investment. &rice %nnounced as the least expensive production car in the !orld, ,ata aimed for a price of one lakh rupees, or 199,999, !hich !as approximately N$,999 A& at the time. [$3] 8nly the very first customers !ere able to purchase the car at that price, ho!ever, and, as of $91$, the price for the basic *ano is around 1=9,999.[$6] Increasing material costs may be to blame for this rapid rise in price.[$=]

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"ompared to the Dolks!agen 2eetle it has a relatively lo! price, ho!ever. In 1FF9, a 2eetle from -exican factories !as priced at N=,399, [$>] about NF,6$C in today s money. ,he Iord -odel , s initial price !as about NC=9, e+uivalent to N$1,FC: today. Cost-cutting features ,he *ano s design implements many measures that make its manufacture cheap.

,he *ano s trunk is only accessible from inside the car, as the rear hatch does not 8ne !indscreen !iper instead of the usual pair 4also seen earlier on certain "itroen *o po!er steering, unnecessary due to its light !eight[11] ,hree lug nuts on the !heels instead of the usual four 4also seen on &mart5 [$F] 8nly one !ing mirror[11] #adio or "/ player is optional 4the idea picked on some basic car models in *orth *o airbags on any model [39] >$6cc rear engine has only $ cylinders 4recently implemented in ne! Iiat =99, !ith *o air conditioning in base model 4as on most basic car models in 'urope and *orth

open.[$C]

and -ercedes models5 [11]

%merica5 [11]

a surcharge5 [11]

%merica5 Ta'a Nano .// There are reports for a larger capacity Tata 7ano! the car engine and ill compete probably the car ill be launched by 2213-end and it ill feature an 522cc ith the segment topper 6aruti Su?uki Alto 522. 6ost ill have a competitive price ill ill be the last among the three

tag of around .s. 2.( lakh. The 522 version upgraded versions of 7ano! be launched shortly. Technical s,eci+ica'ions

hile other t o Tata 7ano @iesel and 7ano %7=

,he *ano 4$91$5 is a 3C )& 4$C k.M 3: hp5 car !ith a t!o-cylinder >$6 cc rear engine. ,he car complies !ith 2&6 Indian emission standards and can also meet 'uropean emission standards as !ell. ,he development of the *ano had led to 31 /esign and 3: ,echnology patents being filed Radical ,o0er,lan's

12

.hile the *ano is driven by a petrol engine, several more-radical po!erplants have been proposed but not put into production. %lso, an upscale version !as sho!n at an autosho!. Compressed-air engine ,ata -otors signed an agreement in $99: !ith a Irench firm, -otor /evelopment International, to produce a compressed air car *ano.[3>] .hile the vehicle !as supposed to be able to travel approximately $99 kilometres 41$9 mi5 on N3 A& of electricity to compress the air, ,ata s Dice )resident of 'ngineering &ystems confirmed in late $99F that vehicle range continues to be a problem. Diesel % !ebsite has speculated that the *ano might be made available !ith a diesel engine. [3C] ,ata -otors have not confirmed this but have stated; <%s of no! there is no /iesel variant of the *ano. ,he *ano is only available in a )etrol version.< Electric vehicle ,ata has discussed the possibility of producing an electric version,[69] and !hile it sho!cased an electric vehicle *ano at the $919 Leneva -otor &ho!,[61] no such car is currently on the market. If an 'D *ano is sold it is expected to be the <!orld s cheapest electric car<,[6$] use lithiumion batteries, and have a range of C9 miles 4139 km5.[63] % *or!egian electric car specialist, -il?Obil Lrenland %&, has been named as a supposed partner in the pro?ect.[69] European export %n upscale *ano concept car called the 'uropa !as sho!n at the $99F Leneva -otor &ho!.

13

LITERATURE REVIEW

14

LITERATURE REVIEW
Article 1 !hat gave "ano a headstart #
The 7ano could potentially challenge the conventional isdom ithin the auto industry that holly ne concepts do not live long enough. 7e launches basically add a histle here and a bell there to the plethora of e1isting models. &ndeed! in more than 42 car launches orld ide! there have been not more than a handful of seminal shifts ithin this industry. +ut the Tata offering has come to topple all those casts by reordering the status-<uo. The hole story seems to strike t o notes at once. The first one is true to the old adage among businesses that the ise profit from giving that hich profits their customersA the second dares to contrarily create and nurture a space that others overlooked or even re>ected. Some $no%n facts 7ot too long ago! many pundits ithin the industry had held that small cars such as the 6aruti 522 have outlived their use and must! therefore! pack up. Bet! >ust into 2225! a glo ing 6r. .atan Tata drove on to the stage in his 7ano! that sports a far lo er po ered engine and hich may soon storm the &ndian roads. Surprisingly! many of the same pundits ho had bemoaned the t ilight of 6aruti 522 have no begun to celebrate the business sense that the 7ano e1udes. &t looks like! in any case! the Tata 7ano pro>ect has defied te1tbook constructs of successful venturing. &n fact! e kne for good reasons that there is much less money to be made in small cars. 8e also kne that products conceived for specific markets have less possibility of success than those visuali?ed on a global basis. And! admittedly! auto ma>ors ith a ider! deeper portfolio of cars are rightly believed to be able to gain more profitably from a radical but relevant offering. Such manufacturers! it is often ackno ledged! are able to reap from the economies of scale that can be got from sharing the costs of design! manufacture and retail! among their entire product line-up. Small-car concept The Tata pro>ect bore none of the above usual stamps of success. Bet it is pretty hard to term 7ano anything but a success going by the reception it received. This perhaps indicates that the real game is one of strategy. &ndeed! it is not so much about cars or of e1perience as about getting clear the underlying concepts and attitudes. &ronically! Tata#s capture of the Csmall car conceptC is in itself hardly path-breaking.

mall1car conce,' ,he ,ata pro?ect bore none of the above usual stamps of success. @et it is pretty hard to term *ano anything but a success going by the reception it received. ,his perhaps indicates that the real game is one of strategy. Indeed, it is not so much about cars or of experience as about getting clear the underlying concepts and attitudes. Ironically, ,ata(s capture of the Jsmall car conceptK is in itself hardly path-breaking.
Dne recollects that hen the 6aruti 522 as introduced around the mid-1/52s! it as! even after ad>usting for the then stronger rupee! an immensely affordable car , ell belo a lakh of rupees-. &t as! in fact! &ndia#s first small! s eet car. +ut! over time! the s eetness of 6aruti 522 - rather than the real demand for small cars - had diminished. That as 1(

primarily because of its price! hich kept on surging. 8hat is certainly path-breaking is the price tag of the 7ano. )ven if e ent all the ay back before all those price rises and income gro th spread over the past t o consecutive decades! 7ano#s price ould have still generated a landslide sales record in the mid-1/52s. &he price element And! hat is important is! here a pre-liberalised mid-1/52s represented stunted buying po er! Ctoday#s &ndiaC that is to receive the 7ano! represents greatly enlarged buying po er. This! in effect! gives the 7ano an e1ceptional elcome thrust. +esides the element of price-point - here Tata 6otors led the pack on a ide margin - almost every other ma>or car company in the orld seems to have other ise >ust as seriously investigated small cars. &f anything! not ithstanding the environment dimension! the persistently high oil prices of the present decade have! in fact! made all makers gravitate to ard more fuel-efficient! smaller cars. The key <uestion! then! isE 8ith so many auto firms ?eroing in on small cars! ho did Tata 6otors achieve such astounding price levels$ &ndeed! hen global industry ma>ors ere talking about a small car ith trendy! tiny engines! they ere all! in effect! attempting to scale do n on hat they ere traditionally good atE 6edium and big cars.

&%o perspectives Fnlike Tata 6otors! almost none of the global ma>ors had paid due
attention to the thought of an all-ne small car. There is! for sure! a big difference bet een scaling do n a big-si?ed car to a viable small si?e. The gamut of idea generation! concept! design! making! retailing! and so on! differs a great deal bet een the t o perspectives. The first perspective t eaks to fit hat is already on hand! hereas the second creates afresh to fulfill hat is idely sought. %onse<uently! the processes that colour the making of an ine1pensive and cheerful car are not at all #cheap#. Fnderstandably! those processes have to be richer in innovation! bolder in imagination! nimbler in evaluating and! of course! shre der in putting together the pieces ,ideas! hard are! and costs- appealingly. The stal arts of the car industry never <uite sa #small cars# as #small cars#. "ere is here Tata 6otors strode ahead! giving 6r. Tata and his team a head-start. The 7ano! then! brings home the truth that lacking certain advantages can actually prove more re arding. The car industry! unlike the insurance industry! hich en>oys safety cover from reinsurance! has never been able to obtain a guaranteed cover for assured success. Dne could say that the future 7anos ould certainly get their shots of incremental improvement. So! too! ould be the approaches of many other aspiring small-car makers! after taking note of this primordial shift. # Source : The Hindu Business Line February 5th, !!"

Article ' &ata to ride "ano to Geneva (otor Sho%

Tata 6otors# 7ano! easily the orld#s most talked-about car these days! ill make its international debut at the 45th =eneva 6otor Sho in the first eek of 6arch. The fivedoor hatchback that costs >ust .s 122!222 ,G2!(22-! making it the orld#s cheapest! as unveiled in Hanuary this year at the Auto )1po here. 7ano ould be among Tata 6otors# e1hibits at the sho ! a company spokesperson said here. Sales of 7ano! nicknamed the people#s car for its affordable pricing that ill make four- heelers available to millions of middle-class people ho hitherto rode t o- heelers! is e1pected to start in the second half of this year. Although the car has its share of critics! it has undeniably put &ndia on the global automotive map and has triggered a race among leading car makers to match the 7ano price-point. Already! car manufacturers .enault and 7issan are eyeing a G3222 car. The 7ano! hich Tata 6otors has said meets all safety and emission norms! ill share the limelight ith top mar<ues from around the orld that are e1pected at the sho . This year#s edition of the =eneva 6otor Sho ill mark the 11th year of participation for Tata 6otors. Tata 6otors# 7ano! easily the orld#s most talked-about car these days! ill make its international debut at the 45th =eneva 6otor Sho in the first eek of 6arch. # Source :The #conomic Times February $th, !!" 13

Article ) *ndian people+s car

&ndia is one of those developing countries hose economies are e1pected to be among the orld leaders by the middle of this century. &ts technological skill and financial clout have already made an impact in the &T industry and the international cricketing arena! to take >ust t o e1amples. +ut the unveiling of Tata 6otors# 7ano car in 7e @elhi yesterday The headline ne s is that the 7ano ill cost only pounds 1!322! thus opening a potentially huge market in the developing orld. +ut Tata has also stolen a march on giant vehicle manufacturers such as =6! 0ord! Toyota! I 8! 6itsubishi and .enault-7issan! all of hich are looking to e1pand sales in Asia! Africa and ;atin America at a time hen the )uropean and American markets are! respectively! flat and declining. Tata has produced a car that not only costs pounds (22 less than the cheapest %hinese model! but also breaks technological ground by having a rear-mounted t o-cylinder engine! hich both saves fuel and creates interior space. &t has taken out more than 34 patents on technologies used in its manufacture. The Tata =roup! the country#s largest conglomerate! epitomi?es the global outreach of modern &ndiaA having ac<uired the %orus metals company last year! it is no seeking to buy Haguar %ars and ;and .over. The orld#s second most populous nation presents a striking contrast bet een that kind of industrial clout and the poverty in hich most &ndians still live. At one end of the scale are billionaires such as Ii>ay 6allya! ho is promoting &ndia as a 0ormula 1 racing po er. At the other are the inhabitants of 6umbai#s periphery ho lack decent housing! education and healthcare. The 7ano lies bet een those t o e1tremesE a car built to attract members of the urban middle class ho at present perch on motorcycles. That it ill add to &ndia#s already acute traffic problems should remind the government of ho far it has fallen behind in infrastructure development! hether roads! electricity or ater. The 7ano is a remarkable first from a country that still e1asperates for its failure to provide basic services.
# Source : As published in The Daily Telegraph, London on January 11th, 2008

PROBLEM DEFINITION
Marketing Research Problem:
%To &ind out the consumer perception on T'T'(S )')* in Ban+alore city,TATA's 7A7D ill be launched on 23rd 6arch 2225. There has been lot's of e1citement and enthusiasm among the mass for the product. To find out ho the common mass perceives the product and ho should TATA 6otors position J7A7DK it is important to conduct a research.

Objective of the Study:

P To kno the consumer perception on TATA J7A7DK. L To find out the a areness level about TATA J7A7DK. L To find out the Acceptance level of people. L To kno about factors affecting purchase decision of TATA J7A7DK. L To find out the target segment for TATA 7A7D

RESEARCH METHODOLOGY
.#S#'./H 0#SI1):
14

@escriptive .esearch 6ethod

S'23LI)1 3.*/#04.#:
Sampling Plan: %onvenient Sampling ,7on-Mrobabilistic Sampling 6ethodSample Size: 122 respondents

54#STI*))'I.# 0#SI1):
The research as done on the basis of a structured <uestionnaire

FI#L0 6*.7 3L'):

122 respondents ere intervie ed in and around the Alliance %entral campus! Anekal! 0D.F6 6all! +T6 Stage 1 N 2 and *ormangala areas of +angalore. The group as divided into three groups of 2 intervie ers each ho intervie ed respondents at the above mentioned locations. The respondents ere intervie ed from 4th6ar-4th 6ar 222/.

LI2IT'TI*)S:
L The accuracy of the responses given by the respondents. L @ata as collected from the limited locations of +angaloreA therefore findings cannot be generali?ed for the hole city or country. L ;anguage as a barrier bet een the intervie er and the respondents to collect the responses.

DA&A C,--EC&*,"
@ata as collected from the follo ing t o sourcesE )#I-%#@ /%,% "800'",I8*; Mrimary @ata as collected through JSF.I)BK using a structured <uestionnaire through hich the research as able to get an insight in to the consumers mind and to learn about perception to ards J7A7DK. SEC,"DA./ DA&A C,--EC&*," Secondary @ata as collected through ma+a8ines, 9ournals, articles and earlier reports. Secondary @ata helped in finding the variables that has an effect on the perception made by the people to ards TATA 7ano.

15

Com,an) &ro+ile

1/

Ta'a Mo'ors Limi'ed 4formerly TELCO5 is an Indian multinational automotive manufacturing company head+uartered in -umbai, -aharashtra, India and a subsidiary of the ,ata Lroup. Its products include passenger cars, trucks, vans, coaches, buses and military vehicles. It is the !orld s eighteenth-largest motor vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume.[3] ,ata -otors has auto manufacturing and assembly plants in Bamshedpur, )antnagar, 0uckno!, &anand, /har!ad and )une, India, and in %rgentina, &outh %frica, ,hailand and the Anited 1ingdom. It has research and development centres in )une, Bamshedpur, 0uckno! and /har!ad, India, and in &outh 1orea, &pain, and the Anited 1ingdom. It has a bus manufacturing ?oint venture !ith -arcopolo &.%., ,ata -arcopolo, and a construction e+uipment manufacturing ?oint venture !ith 7itachi, ,elcon "onstruction &olutions. Iounded in 1F6= as a manufacturer of locomotives, the company manufactured its first commercial vehicle in 1F=6 in a collaboration !ith /aimler-2enz %L, !hich ended in 1F>F.[6] ,ata -otors entered the passenger vehicle market in 1FF1 !ith the launch of the ,ata &ierra and in 1FFC launched the first fully indigenous Indian passenger car, the Indica. ,ata -otors ac+uired the &outh 1orean truck manufacturer /ae!oo "ommercial Dehicles "ompany in $996 and the 2ritish premium car maker Baguar 0and #over in $99C. ,ata -otors is listed on the 2ombay &tock 'xchange, !here it is a constituent of the 2&' &'*&'Q index, the *ational &tock 'xchange of India and the *e! @ork &tock 'xchange. ,ata -otors is ranked 316th in the $91$ Iortune Llobal =99 ranking of the !orld s biggest corporations.[3 -is'or) ,ata entered the commercial vehicle sector in 1F=6 after forming a ?oint venture !ith /aimler-2enz of Lermany. %fter years of dominating the commercial vehicle market in India, ,ata -otors entered the passenger vehicle market in 1FF1 by launching the ,ata &ierra, a multi utility vehicle. %fter the launch of three more vehicles, ,ata 'state 41FF$M a station !agon design based on the earlier ,ata-obile 41FCF5, a light commercial vehicle5, ,ata &umo 41FF6M 0"D5 and ,ata &afari 41FFCM India s first sports utility vehicle5. ,ata launched the Indica in 1FFC, the first fully indigenous Indian passenger car. %lthough initially criticised by auto-analysts, its excellent fuel economy, po!erful engine and an aggressive marketing strategy made it one of the best selling cars in the history of the Indian
22

automobile industry. % ne!er version of the car, named Indica D$, !as a ma?or improvement over the previous version and +uickly became a mass-favorite. ,ata -otors also successfully exported large +uantities of the car to &outh %frica. ,he success of Indica played a key role in the gro!th of ,ata -otors.[=] In $996 ,ata -otors ac+uired /ae!oo s &outh 1orea-based truck manufacturing unit, /ae!oo "ommercial Dehicles "ompany, later renamed ,ata /ae!oo.[>] In $99=, ,ata -otors ac+uired a $1E controlling stake in the &panish bus and coach manufacturer 7ispano "arrocera.[:] ,ata -otors continued its market area expansion through the introduction of ne! products such as buses 4&tarbus H Llobus, ?ointly developed !ith subsidiary 7ispano "arrocera5 and trucks 4*ovus, ?ointly developed !ith subsidiary ,ata /ae!oo5. In $99>, ,ata formed a ?oint venture !ith the 2razil-based -arcopolo, ,ata -arcopolo 2us, to manufacture fully built buses and coaches.[C] In $99C, ,ata -otors ac+uired the 2ritish car maker Baguar 0and #over, manufacturer of the Baguar, 0and #over and /aimler luxury car brands, from Iord -otor "ompany. [F][19][11]
[1$]

In -ay $99F ,ata unveiled the ,ata .orld ,ruck range ?ointly developed !ith ,ata /ae!oo.[13] /ebuting in &outh 1orea, &outh %frica, the &%%#" countries and the -iddle'ast by the end of $99F.[13] ,ata ac+uired full o!nership of 7ispano "arrocera in $99F.[16] In $919, ,ata -otors ac+uired an C9E stake in the Italy-based design and engineering company ,rilix for a consideration of R1.C= million. ,he ac+uisition formed part of the company s plan to enhance its styling and design capabilities.[1=] In $91$, ,ata -otors announced it !ill invest around > billion on developing Iuturistic Infantry "ombat Dehicles in collaboration !ith /#/8.[1>] O,era'ions ,ata -otors has vehicle assembly operations in India, the Anited 1ingdom, &outh 1orea, ,hailand, &pain and &outh %frica. It plans to establish plants in ,urkey, Indonesia and 'astern 'urope.[1:] ,ata -otors principal subsidiaries include Baguar 0and #over, ,ata /ae!oo and ,ata 7ispano.

21

&ata (otors Cars ,ata -otors is among the top three in passenger vehicles in India !ith products in the compact, midsize car and utility vehicle segments.[1:] ,he company(s manufacturing base in India is spread across Bamshedpur 4Bharkhand5, )une 4-aharashtra5, 0uckno! 4Attar )radesh5, )antnagar 4Attarakhand5 and /har!ad 41arnataka5. ,he company is establishing a ne! plant at &anand 4Lu?arat5. ,ata s dealership, sales, service and spare parts net!ork comprises over 3=99 touch points.[1:] ,ata also has franchiseeG?oint venture assembly operations in 1enya, 2angladesh, Akraine, #ussia and &enegal.[1C] ,ata has dealerships in $> countries across 6 continents.[1F] ,hough ,ata is present in many countries it has only managed to create a large consumer base in the Indian &ubcontinent, namely India, 2angladesh, 2hutan, &ri 0anka and *epal. ,ata has a gro!ing consumer base in Italy, &pain and &outh %frica. ,ata -otors has more than $=9 dealerships in more than 1F= cities across $: states and 6 Anion ,erritories of India.[$9] It has the 3rd largest &ales and &ervice *et!ork after -aruti &uzuki and 7yundai. &ata Dae%oo

"ompany s global plans to reduce domestic exposure. ,he domestic commercial

vehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy. ,ata -otors has a high domestic exposure of SF6E in the -7"D segment and SC6E in the light commercial vehicle 40"D5 segment. &ince the domestic commercial vehicle sales of the company are at the mercy of the structural economic factors, it is increasingly looking at the international markets. ,he company plans to diversify into various markets across the !orld in both -7"D as !ell as 0"D segments.

,o expand the product portfolio ,ata -otors recently introduced the $=-, LD.

,ata *ovus from /ae!oo(s 4&outh 1orea5 4,/"D5 platform. ,ata plans to leverage on the strong presence of ,/"D in the heavy-tonnage range and introduce products in India at an appropriate time. ,his !as mainly to cater to the international market and also to cater to the domestic market !here a ma?or improvement in the #oad infrastructure !as done through the *ational 7igh!ay /evelopment )ro?ect. &n 2224! Tata 6otors ac<uired @ae oo %ommercial Iehicle %ompany of South *orea. The reasons behind the ac<uisition ereE ,ata /ae!oo is the second-largest heavy commercial vehicle manufacturer in &outh 1orea. ,ata -otors has ?ointly !orked !ith ,ata /ae!oo to develop trucks such as *ovus and
22

.orld ,ruck and buses including Llo2us and &tar2us. In $91$, ,ata !ill start developing a ne! line to manufacture competitive and fuel efficient commercial vehicles to face the competition posed by the entry of international brands like -ercedes-2enz, Dolvo and *avistar into the Indian market.[ &ata 0ispano Tata "ispano 6otors %arrocera! S.A. is a bus and coach cabin manufacturer based in Oarago?a! Aragon! Spain and a holly o ned subsidiary of Tata 6otors. Tata "ispano has plants in Oarago?a! Spain and %asablanca! 6orocco. Tata 6otors first ac<uired a 21P stake in "ispano %arrocera SA in 222(!94: and ac<uired the remaining 4/P for an undisclosed sum in 222/! making it a fully o ned subsidiary! subse<uently renamed Tata "ispano. 1aguar -and .over Baguar 0and #over )0" is a 2ritish premium automaker head+uartered in .hitley, "oventry, Anited 1ingdom and has been a !holly o!ned subsidiary of ,ata -otors since Bune $99C, !hen it !as ac+uired from Iord -otor "ompany. [$$] Its principal activity is the development, manufacture and sale of Baguar luxury and sports cars and 0and #over premium four !heel drive vehicles. It also o!ns the currently dormant /aimler, 0anchester and #over brands.[$3] Baguar 0and #over has t!o design centres and three assembly plants in the A1. Ander ,ata o!nership, Baguar 0and #over has launched ne! vehicles including the #ange #over 'vo+ue, Baguar I-,ype and the fourth-generation #ange #over. 02 &ransmission and 02 Axles "I Transmission ,"IT;- and "I A1les ,"IA;- are 122P subsidiary companies of Tata 6otors engaged in the business of manufacture of gear bo1es and a1les for heavy and medium commercial vehicles! ith production facilities and infrastructure based at Hamshedpur. "IA; and "IT; have been amalgamated ton "IA; and is renamed as T6; @rivelines ;td. &ata &echnologies Tata Technologies ;imited ,TT;- provides engineering and design services to the automotive industry. Tata 6otors holds 53./1P of TT;'s share capital. TT; is based in Mune ,"in>a adi- and operates in the Fnited States and )urope through its holly o ned subsidiaries in @etroit and ;ondon respectively. &t also has a presence in Thailand. Tata Technologies is a soft are service provider in the &T
23

services and +MD space. &ts global client list includes 0ord! =eneral 6otors! Toyota and "onda. TT; ac<uired the +ritish engineering and design services company &ncat &nternational Mlc for 4 billion in August 222(. &ncat speciali?es in engineering and design services and product lifecycle management in the international automotive! aerospace and engineering markets. European &echnical Centre The Tata 6otors )uropean Technical %entre ,T6)T%- is an automotive design! engineering and research company based at the campus of the Fniversity of 8ar ick in the Fnited *ingdom. &t 2oin' ven'ures &ata (arcopolo Tata 6arcopolo is a bus manufacturing >oint venture bet een Tata 6otors ,(1Pand the +ra?il-based 6arcopolo S.A. ,4/P-. The >oint venture manufactures and assembles fully built buses and coaches targeted at developing mass rapid transportation systems. &t utilises technology and e1pertise in chassis and aggregates from Tata 6otors! and kno -ho lo -floor city bus hich is in processes and systems for bodybuilding and bus body design from 6arcopolo. Tata 6arcopolo has launched a idely used by %hennai! %oimbatore! @elhi! "yderabad! 6umbai! ;uckno ! Mune! *ochi! Trivandrum and +engaluru transport corporations. &ts manufacturing facility is based in @har ad. Fiat *ndia Automo3iles Tata 6otors also formed a >oint venture ith 0iat and gained access to 0iat's diesel ith engine technology.92(: Tata 6otors sells 0iat cars in &ndia through a (2Q(2 >oint venture 0iat Automobiles &ndia ;imited! and is looking to e1tend its relationship 0iat and &veco to other segments. &elcon Construction Solutions Telcon %onstruction Solutions is a >oint venture bet een Tata 6otors and "itachi hich manufactures e1cavators and other construction e<uipment. &roduc's Commercial vehicles

as established in 222( and is a

holly o ned

subsidiary of Tata 6otors. &t as the >oint developer of the 8orld Truck. 924:

,ata %ce ,ata %ce Tip

24

,ata &uper %ce ,ata ,0G,elcolineG$9: /I )ickup ,ruck ,ata 69: 'x and 'x$ ,ata :9F 'x ,ata C9F 'x and 'x$ ,ata F9F 'x and 'x$ ,ata 119F 4Intermediate truck5 ,ata 1=1$ 4-edium bus chassis5 ,ata 1>1$G1>1> 47eavy bus chassis5 ,ata 1>1C 4&emi 0o! Iloor bus chassis5 ,ata 1>$3 4#ear 'ngined 0o! Iloor bus chassis5 ,ata 1=1C" 4-edium truck5 ,ata 1>13G1>1= 4-edium truck5 ,ata $=1=G$=1> 4-edium truck5 ,ata &tarbus 42randed 2uses for city, inter city, school bus and standard passenger ,ata /ivo 4Hispano DivoM Iully built luxury coach5 ,ata "ity#ide 41$ U $9 seater buses for intra-city use5 ,ata 391= 47eavy truck5 ,ata 311C 47eavy truck5 4CV$5 ,ata 3=1> 47eavy truck5 ,ata 691C 47eavy truck5 ,ata 6F$3 4Altra-7eavy truck5 4>V65 ,ata *ovus 47eavy truck designed by ,ata /ae!oo5 ,ata )rima 4,he .orld ,ruck designed by ,ata -otors and ,ata /ae!oo5 ,ata )rima 0Q 4&tripped do!n version of ,ata )rima5 ,ata Altra 4I"D &egment5 Tata ;SI ,;ight Specialist IehicleTata 6ine Mrotected Iehicle ,4R4Tata 2 Stretcher Ambulance Tata 424 Troop %arrier! available in hard top! soft top! 4R4! and 4R2 versions
2(

transportation5

(ilitary vehicles

Tata ;MTA 413 T% ,4R4Tata ;MT 42/ ) Tata S@ 121( T% ,4R4Tata ;MTA 131( T% ,4R4Tata ;MTA 1321 T% ,3R3Tata ;MTA 131( T% ,4R2Tata 8inger Massenger 6ini +us Tata ;androver 1(1( 0

Electric vehicles ,ata -otors has unveiled electric versions of the ,ata Indica passenger car and the ,ata %ce commercial vehicle, both of !hich run on lithium batteries. ,he company has indicated that the electric Indica !ould be launched locally in India in about $919, !ithout disclosing the price. ,he vehicle !ould be launched in *or!ay in $99F.[$>] ,ata -otors A1 subsidiary, ,ata -otors 'uropean ,echnical "entre, has bought a =9.3E holding in electric vehicle technology firm -il?Obil LrenlandGInnovas?on of *or!ay for A&N1.F3 million, !hich specialises in the development of innovative solutions for electric vehicles, and plans to launch the electric Indica hatchback in 'urope next year. [$:][$C][$F] In &eptember $919, ,ata -otors presented four "*LU'lectric 7ybrid lo!-floored &tarbuses to the /elhi ,ransport "orporation, to be used during the "ommon!ealth games. ,hese !ere the first environmentally friendly buses to be used for public

-is'or) o+ Ta'a Nano %fter having successfully launched the lo! cost ,ata %ce truck in $99=, ,ata -otors began development of an affordable car that !ould appeal to the many Indians !ho drive motorcycles.[6] ,he purchase price of this no frills auto !as brought do!n by dispensing !ith most nonessential features, reducing the amount of steel used in its construction, and relying on lo! cost Indian labor, as !ell as a ne! design concept called Irugal 'ngineering.
[=]

JIrugal 'ngineeringK !as a term coined in $99> by #enault "hief 'xecutive "arlos Lhosen to describe the design process behind the ,ata *ano. ,his type of design concept !as designed to better the those at the bottom of the pyramid.
[>]

7o!ever, J% &tudy on

"onsumer )erceptions H 'xpectations for ,ata *anoK sho!s that the bottom of the pyramid
23

is not very a!are of !hat they are getting !hen purchasing a ,ata *ano.

[:]

.hile that paper

may seem to focus on the Indian contribution, the *ano !as a truly international effort. J,ata turned to Lermany(s 2osch for a ne! engine-management systemM Italy(s I./. '. %. Institute and ,rilix for styling and exterior designM India(s &ona 1oyo for light!eight steering shaftsM %merica(s Bohnson "ontrols for the seating systemM Bapan(s ,oyo for the engine-cooling Lermany(s 2ehr for the heating, ventilating, and air-conditioning systemM and India(s -adras #ubber Iactory for tougher than normal rear tires.K
[C]

&o to call it the

Indian "ar is understandable, but misleading. ,he *ano is an excellent example of 0%)/. ,he <0%)/ 4lean principle applied product development5 process is implemented !ith utilization of external sources of kno!ledge and utilization of the digital technology that support the product development process in order to complement the !eakness of technological capability.<
[F]

.hile the *ano is engineerd from the bottom up, the existing

economies of scale from other manufactures are not to be ignored. Ior the *ano, ,ata motors chose to <outsource C=E of the *ano(s components and use >9E fe!er vendors than normal to reduce transaction costs and achieve better economies of scale<.[19] ,he introduction of the *ano received much media attention due to its lo! price. Expectations and effects 'xpectations created for the car during the run up to its production may have been out of proportion !ith its realized success. % $99C study, by Indian rating agency "#I&I0, thought the *ano !ould expand the nation s car market by >=E, [1$] but, as of late $91$, ne!s reports have detailed the under!helming response of the Indian consumer to the offeringM sales in the first t!o fiscal years after the car s unveiling remained steady at about :9,999 units although ,ata appears intent on maintaining a capacity to produce the car in much larger +uantities, some $=9,999 per year, should the need arise.[13] It !as anticipated that its $99F debut !ould greatly affect the used car market, and prices did drop $=-39E prior to the launch. [16] &ales of the *ano s nearest competitor, the -aruti C99, fell by $9E immediately follo!ing the unveiling of the *ano.[1=] It is unkno!n if the *ano has had a lasting effect on the prices of and demand for close substitutes, ho!ever. In Buly $91$, ,ata Lroup "hairman, #atan ,ata, said that the car has immense potential in the developing !orld !hile admitting that early opportunities !ere !asted due to initial problems.[

24

Singur factory pullout Tata 6otors announced in 2223 that the 7ano 8est +engal. land the ne
914:

ould be manufactured in Singur!

;ocal farmers soon began protesting the forced ac<uisition of their

factory entailed.914: Tata first delayed the 7ano launch and later

decided to build the car in a different state! =u>arat! instead. Gujarat Factory Controversy ,he plant !as moved to Lu?arat after the controversy in &ingur. ,he Lu?arat plant came under severe criticism from sections of society, due to a large amount of soft-loan offered by the Lu?arat government. ,he Lu?arat government offered a loan of #s. F=:9 "rores, !ith a meagre interest rate of 9.1E and !ith the loan to be paid back in $9 years. ,he government also promised to build a four-lane road and give exemption on electricity duty, registration and transfer charges of land. ,he government also promised to put up a !aste disposal plant, supply natural gas through a pipeline and provide 199 acres near %hmedabad for a to!nship. [1F] ,he opposition parties alleged mass corruption in the pro?ect. ,he opposition is also claiming that the pro?ect is actually heavily subsidied by the people to the tune of #s. >9,999 per car, !hich is more than half of the initial offer price of the car.
[$9]

,his subsidization

comes in many forms. ,he farmers !ho agreed to lease their land to ,ata motors found out after!ard that they !ould not receive any compensation. ,he land that government sold to the company !as done so for under half of its market value. ,his is !here the savings lie. [$1] ,his is ?ust another example of a developing country 4or in this case, a state5, paying incentives !hich are too high in the hopes of landing some investment. ,he conservative estimates start at C99 million NA&, !hich is more than ,ata s investment. &rice %nnounced as the least expensive production car in the !orld, ,ata aimed for a price of one lakh rupees, or 199,999, !hich !as approximately N$,999 A& at the time. [$3] 8nly the very first customers !ere able to purchase the car at that price, ho!ever, and, as of $91$, the price for the basic *ano is around 1=9,999.[$6] Increasing material costs may be to blame for this rapid rise in price.[$=] "ompared to the Dolks!agen 2eetle it has a relatively lo! price, ho!ever. In 1FF9, a 2eetle from -exican factories !as priced at N=,399, [$>] about NF,6$C in today s money. ,he Iord -odel , s initial price !as about NC=9, e+uivalent to N$1,FC: today.

25

Cost-cutting features ,he *ano s design implements many measures that make its manufacture cheap.

,he *ano s trunk is only accessible from inside the car, as the rear hatch does not 8ne !indscreen !iper instead of the usual pair 4also seen earlier on certain "itroen *o po!er steering, unnecessary due to its light !eight[11] ,hree lug nuts on the !heels instead of the usual four 4also seen on &mart5 [$F] 8nly one !ing mirror[11] #adio or "/ player is optional 4the idea picked on some basic car models in *orth *o airbags on any model [39] >$6cc rear engine has only $ cylinders 4recently implemented in ne! Iiat =99, !ith *o air conditioning in base model 4as on most basic car models in 'urope and *orth

open.[$C]

and -ercedes models5 [11]

%merica5 [11]

a surcharge5 [11]

%merica5 Ta'a Nano .// There are reports for a larger capacity Tata 7ano! the car engine and ill compete probably the car ill be launched by 2213-end and it ill feature an 522cc ith the segment topper 6aruti Su?uki Alto 522. 6ost ill have a competitive price ill ill be the last among the three

tag of around .s. 2.( lakh. The 522 version upgraded versions of 7ano! be launched shortly. Technical s,eci+ica'ions

hile other t o Tata 7ano @iesel and 7ano %7=

,he *ano 4$91$5 is a 3C )& 4$C k.M 3: hp5 car !ith a t!o-cylinder >$6 cc rear engine. ,he car complies !ith 2&6 Indian emission standards and can also meet 'uropean emission standards as !ell. ,he development of the *ano had led to 31 /esign and 3: ,echnology patents being filed Radical ,o0er,lan's .hile the *ano is driven by a petrol engine, several more-radical po!erplants have been proposed but not put into production. %lso, an upscale version !as sho!n at an autosho!.

2/

Compressed-air engine ,ata -otors signed an agreement in $99: !ith a Irench firm, -otor /evelopment International, to produce a compressed air car *ano.[3>] .hile the vehicle !as supposed to be able to travel approximately $99 kilometres 41$9 mi5 on N3 A& of electricity to compress the air, ,ata s Dice )resident of 'ngineering &ystems confirmed in late $99F that vehicle range continues to be a problem. Diesel % !ebsite has speculated that the *ano might be made available !ith a diesel engine. [3C] ,ata -otors have not confirmed this but have stated; <%s of no! there is no /iesel variant of the *ano. ,he *ano is only available in a )etrol version.< Electric vehicle ,ata has discussed the possibility of producing an electric version,[69] and !hile it sho!cased an electric vehicle *ano at the $919 Leneva -otor &ho!,[61] no such car is currently on the market. If an 'D *ano is sold it is expected to be the <!orld s cheapest electric car<,[6$] use lithiumion batteries, and have a range of C9 miles 4139 km5.[63] % *or!egian electric car specialist, -il?Obil Lrenland %&, has been named as a supposed partner in the pro?ect.[69] European export %n upscale *ano concept car called the 'uropa !as sho!n at the $99F Leneva -otor &ho!. Car +ires There ere reports of several fire incidents involving the 7ano. 94(: The company ere connected to the car's design or its parts and blamed Jforeign denied those

electrical e<uipmentK found on top of the e1haust system. 94(: The company offered to retrofit the e1haust and electrical systems but refused to recall the cars. 94(: Tata e1tended the A0ards P $919 2usiness &tandard -otoring Indian car of the year[6>] P $919 2loomberg A,D-%utocar car of the year[6:] P $919 'dison %!ards, first place in the transportation category[6C] P $919 Lood /esign %!ards, in the category of transportation arranty on the car! including those already sold! from 15 months to four years in early @ecember 2212.

32

T'T' )')*: TH# 3#*3L#S( /'. Dne of the greatest strengths of 7A7D is its tiny price tag. The starting price is .s.1!22!222 hich is cheaper than 6aruti 522! the ne1t cheapest ill ork out to be ill at most cost car in &ndian market priced at .s.1!54!341. )ven after the road ta1! service ta1 and the other registration fees! 7A7D base model around 1!4/!222. Segmentation for 7A7D market is done based on geography! rural and segments! urban! and on demography! family si?e and income. 7A7D is targeted at t o- heeler segments! second-hand car segments! auto ricksha middle and lo er income segments. TATA positioned 7A7D in peoples' mind as JT") M)DM;)S' %A.K! JD7) ;A*" %A. that drives D7) +&;;&D7 @.)A6SK and JThe 8orld's cheapest carK safety and eco-friendliness. /onsumer 0ecision ma:in+ process in buyin+ T'T' )ano, )ven though Tata 7ano is the least price 4 seater car in &ndia! it falls in the category of comple1 buying behaviour. ithout compromising on <uality! >ust .s. 1!32!222. )ven its advanced versions like 7A7D ;S

"&=" involvement

;D8 involvement

31

S&=7&0&%A7T

@&00).)7%)

0)8 @&00).A7%)S

0&= 1E +uying behaviour

To substantiate the above statement! in survey 42P people have respondent that buying TATA 7A7D is as difficult as buying other cars.

'nalysis o& sta+es in comple; buyin+ beha<iour, *eed #ecognition Information search 'volution of alternative )urchase decision )ost purchase evaluation. Need Reco(ni'ion3 for Tata 7ano can be driven either by internal stimuli

7eed

,@esireQattitudeQperception- or e1ternal stimuli advertising etc. An attempt is made to understand the need recognition process based on 6aslo 's theory.
32

0ig2E %lassification of consumer need. Thus it is clear from the 0ig 1- 35P people buy the car driven by safety need. 24P buy a car driven by esteem need. 5P people buy a car driven by basic need. To arouse the need for Tata 7ano %ompany should look to aim at 43P people look for car for safety and basic need kno ing the fact that company able to drag the people ho ant to satisfy esteem need. ho

ill not be

In+orma'ion earch ants to find out the information about the Mroduct! Mlace!

&n this stage customer

Mrice and point of purchase. 8hile buying a product like car people seek information from different sources like. %5 25 "5 /5 )ersonal &ources- Iamily, friend and neighbours. "ommercial sources; %dvertising, sales people, dealers, display. )ublic &ources; -ass media and consumer rating agencies 'xperiential sources; /emonstration, examining the product.
33

The research sho s that ma>ority of people depend on reference group for information hile buying TATA 7A7D.

0ig 3E Mreference of channel of information

Since buying Tata 7ano is comple1 buying behaviour people seek lots of information and clarification. %ompany should aim on minimi?ing the customer cost hile seeking these information. The company should focus more on customer testimonials and ord of mouth communication.

Evalua'ion o+ al'erna'ive4

After collecting the information! consumers arrive at some conclusion about the product. &n this stage consumers are comparing different brands based on set parameters hich he or she thinks re<uired in the product. This process differs from consumer to consumer and to the price and for fe ith respect to Tata 7ano some have given importance durability and safety is important.

Since it is clear from the above data that ma>ority of the people are buying the car driven by safety need. Meople are considering %hevrolet spark and 6aruti Alto as the alternative car.
34

)ven though the price of both the cars is high compare to the 7A7D people are considering SMA.* and A;TD as alternative of TATA 7ano. An attempt is made to understand the evaluation of alternative J%hevrolet spark and 6aruti AltoK. Since people are motivated by safety need and %hevrolet safety positioning and 3 years free servicing arranty is able to dra the customer attention.

&oin' o+ di++erence be'0een Maru'i Al'o5 Chevrole' ,ark and Ta'a Nano. T'T' )')* S3'.7 .s, A, A,C5" 'LT* .s, , D,@C"

3rice =#;-Sho>room?

.s, @, A,AB@

.s, A,@"C =&or AB .s, ",A5! =&or AB .s, 5,D@5 =&or AB month loan? Immobili8er *<erall Len+th 2ilea+e =Hi+h>ay? Seatin+ /apacity 2a;imum Speed Front Bra:es .ear Bra:es A!DD mm C :mElitre C 3erson @!5 7mEHour @"! mm dia, drum b @"! mm dia, drum bra:e month loan? ACD5 mm @B :mElitre 5 3erson @B@7mEHour Fentilated discs Sel&-'d9ustin+ 0rum month loan? ACD5 mm @",A :mElitre 5 3erson @A$ 7mEHour 0isc 0rum

8e can see that Tata 7ano does not have immobiliser. JAn immobiliser or immobili?er is an electronic device fitted to an automobile hich prevents the engine from running unless the correct key ,or other token- is present. This prevents the car from being Chot iredC after entry has been achievedK.
3(

The above table sho s that there is a difference in the features and consumer has to pay 2/1(Qmonth e1tra to get additional features offered by 6aruti Alto! considers as value for money. hich he

&urchase decision.

&n this stage consumer buy the most preferred brand. The decision of making the particular brand is made after consumer conviction over the alternative product. Since research has revealed that people do not postpone the purchase of Tata 7ano because it is difficult to make the payment. Mrice is not the factor are making people to postpone the purchase of Tata 7ano. hich is hich postponing the purchase decision of the consumers. There are t o factors

Lack o+ in+orma'ion4

Meople have complete a areness about the price and 122P people have claimed that they are a are of the price of Tata 7ano. 8hen it comes to the features like engine capacity! mileage! safety people have mi1ed response and it reveals that company has not paid attention in communicating the features. %ompany is promoting the price tagline and that is not enough to motivate the consumers ho are derived by comple1 buying behaviour. *i++usion &rocess; hen it is 1 to 2 year

6a>ority of people ,42P people- adopt the innovative product old in the market. Meople are still aiting to postponing the decision of buying this car.
33

atch out this car and they are

%ompany should have patience in launching the marketing programme because it is >ust 1/ months since Tata 7ano is launched. &os' ,urchase evalua'ion4 ill e1perience some level of satisfaction

After purchasing the product consumer and dissatisfaction.

An attempt is made to measure the satisfaction level of TATA 7A7D users after the purchase and the security concerns TATA 7ano. hich is raised by many prospective users of

SatisfactionE

5oP Satisfied

22P @issatisfied

52P of the users are satisfied

ith the car and they feel that they have got

hat

as promised by the company and they are happy to refer this car to others. %ompany should make use of these happy users in ord of mouth advertisement. 22P people are dissatisfied and they are dissatisfied due to interior of the car! finishing of the car! delivery time and front vie . Sa&etyE Safety is still the concern that they feel Average safe that it is e<ually safe as big cars. ith the e1isting users and 52P of the people feel

hile driving Tata 7ano as big cars.22P of people feel

5oP Average Safe safe Safe

22P )<ually

The above data sho s that company has to clearly ork on safety point of vie has to come up level.
34

and

ith the innovative safety measures to increase the satisfaction

Role o+ im,ulse ,urchase in decision makin( ,rocess3

An impulse purchase or impulse buy is an unplanned decision to buy a product or service! made >ust before a purchase .Dne ho tends to make such purchases is referred to as an impulse purchaser or impulse buyer. .esearch findings suggest that emotions and feelings play a decisive role in purchasing! triggered by seeing the product or upon e1posure to a ell crafted promotional message. The research has sho n that buying a Tata 7ano falls under comple1 buying behaviour despite the lo price. The research has also sho n that people ait for 1 to 2 year before buying the product like Tata 7ano. %onsumers do not take the decision of buying a car immediately and follo s the pattern of decision making process very religiously thus impulse purchase is not relevant in buying Tata 7ano! ho ever it can play an &mportant role in choosing the accessories of the car. 6arketer can influence the consumer in choosing the colour and accessories. . Tar(e' Audience3 ill buy the Tata 7ano$ &f online polls are an indication! target audience of ho ere the main inspiration behind ill be less than 2( ill be less

8ho

TATA 7ano Chum-do-hamare-do families!C

the 7ano. &f online polls at social net orking sites are some indication! a bulk of the potential buyers for the 7ano is predominantly male. And! they ill be under 2( years of age than 42 years. The research has sho n that company should craft and e1ecute different strategy to ards target audience and the positioning of the car should be changed. years. &n one online poll! 3/P of the respondents felt that the average 7ano buyer hile 51P agreed that the 7ano buyer

35

#esearch has sho!n that people prefer ,ata *ano as the second car, despite of their

ability to pay for the costly cars. )eople are postponing the purchase of ,ata *ano !aiting for the first car. ,he target audience of the company are the people !ho belong to lo!er middle class and lo!er class. 0o!er middle class and lo!er class people still purchase the car based on esteem need to improve their social status.

0ig [Link] preference of Tata 7ano

C9E of the lo!er middle class and lo!er class people do not kno! driving and thus

they are comfortable riding the bike. "ompany should launch a marketing programme to teach driving to the target audience. 8nce the target audience kno! the driving it !ill be easier for the company to identifies anticipates and satisfies customer re+uirements profitably. #esearch has sho!n that most of the ,arget audience has bike and it is not easy for

them to abandon the bike !hich costs half of the price of ,ata nano. "ompany should give them the exchange offer and offer them good resell price of bike. #esearch has sho!n that company has not communicated the features, safety and the

benefit to target audience and focused hugely on the price. "ompany should keep in the mind the fact that apart from price consumers are looking for many other aspects !hile buying a car.
3/

#esearch has sho!n that most of the ,arget audience likes the advertisement !hich

is informative follo!ed by !hich sho!s the safety. "urrently the company has the advertisement !hich brings pride !hich is chosen least by the consumers. "ompany should design the advertisement !hich combines the information and safety .

0ig(E Advertisement preference by consumers.

,he company should look beyond the current target audience and should focus on

including females in their target audience, since most of the female feel that it is compatible and easy to drive. #esearch also revealed that there is difference in attitude bet!een the prospects and

the current users. "urrent users are satisfied !ith the car !hile prospect users have many uncertainties in mind. "ompany should try to minimize this gap by including the marketing programme !hich focuses on the !ord of mouth.

42

Conclusion;

The strategy should not be to sell ma1imum cars to target audience! ho ever to sell ma1imum car to ma1imum people. )ven though 7ano comes behaviour process. %ompany has to ork on the positioning of the car and provide more features hich eliminates the doubt of safety from the prospects! thus making decision making process much simpler for the consumers. %ompany has to offer test drives to shorten the decision making process of the consumers. %ompany has to provide the enough information to the consumers! process. hich is the key of decision making ith the tiny price tags it follo s a comple1 buying

41

TATA MOTORS PROFILE:

Tata 6otors ;imited is &ndia#s largest automobile company! ith revenues of .s. 32!423 crores ,FS@ 4.2 billion- in 2223-24. &t is the leader by far in commercial vehicles in each segment! and the second largest in the passenger vehicles market ith inning products in the compact! midsi?e car and utility vehicle segments. The company is the orld#s fifth largest medium and heavy commercial vehicle manufacturer! and the orld#s second largest medium and heavy bus manufacturer. The company#s 22!222 employees are guided by the vision to be Cbest in the manner in hich e operate best in the products e deliver and best in our value system and ethics.C Tata 6otors helps its employees reali?e their potential through innovative ". practices. The company#s goal is to empo er and provide employees ith dynamic career paths in congruence ith corporate ob>ectives. All-round potential development and performance improvement is ensured by regular in-house and e1ternal training. The company has on several a ards recognising its training programs. )stablished in 1/4(! Tata 6otors# presence indeed cuts across the length and breadth of &ndia. Dver 4 million Tata vehicles ply on &ndian roads! since the first rolled out in 1/(4. The company#s manufacturing base is spread across &ndia - Hamshedpur ,Hharkhand- in the east! Mune ,6aharashtra- in the est! and in the north in ;uckno ,Fttar Mradesh- and Mantnagar ,Fttarakhand-. A ne plant is being set up in Singur ,close to *olkata in 8est +engal- to

manufacture the company#s small car. The nation- ide dealership! sales! services and spare parts net ork comprises over 2!222 touch points. The company also has a strong auto finance operation! T6; 0inancial Services ;imited! supporting customers to purchase Tata 6otors [Link] 6otors! the first company from &ndia#s engineering sector to be listed in the 7e Bork Stock )1change

,September 2224-! has also emerged as an international automobile company. &n 2224! it ac<uired the @ae oo %ommercial Iehicles %ompany! *orea#s second largest truck maker. 42

The rechristened Tata @ae oo %ommercial Iehicles %ompany has launched several ne products in the *orean market! hile also e1porting these products to several international

markets. Today t o-thirds of heavy commercial vehicle e1ports out of South *orea are from Tata @ae oo. &n 222(! Tata 6otors ac<uired a 21P stake in "ispano %arrocera! a reputed Spanish bus and coach manufacturer! ith an option to ac<uire the remaining

stake as ell. "ispano#s presence is being e1panded in other &n 2223! it formed a >oint venture ith the +ra?il-based 6arcopolo! a global leader in +odybuilding for buses and coaches to manufacture fully-built buses and coaches for &ndia and select international markets. Tata 6otors also entered into a >oint venture in 2223 ith Thonburi Automotive Assembly Mlant %ompany of Thailand to manufacture and market the company#s pickup vehicles in Thailand. &n 2223! Tata 6otors and 0iat Auto formed an industrial >oint venture at .an>angaon ,near Mune in 6aharashtra! &ndia- to produce both 0iat and Tata cars and 0iat po er trains for the &ndian and overseas marketsA Tata 6otors already distributes and markets 0iat branded cars in &ndia. &n 2224! Tata 6otors and 0iat Auto entered into an agreement for a Tata license to build a pick-up vehicle bearing the 0iat nameplate at 0iat =roup Automobiles# Mlant at %ordoba! Argentina. The pick-up ill be sold in South and %entral America and select )uropean markets. These linkages ill further e1tend Tata 6otors# international footprint! established through e1ports since 1/31. 8hile currently about 15P of its revenues are from international business! the company#s ob>ective is to e1pand its international business! both through organic and inorganic gro th routes. The company#s commercial and passenger vehicles are already being marketed in several countries in )urope! Africa! the 6iddle )ast! Australia! South )ast Asia and South Asia. &t has assembly operations in 6alaysia! *enya! +angladesh! Fkraine! .ussia and Senegal. The foundation of the company's gro th is a deep understanding of economic stimuli and customer needs! and the ability to translate them into customer-desired offerings through leading edge .N@. The .N@ establishment includes a team of 1422 scientists and engineers. The company#s )ngineering .esearch %entre as established in 1/33! and has facilities in Mune! Hamshedpur and ;uckno . The ).% has enabled pioneering technologies and products. &t as Tata 6otors! hich developed the first indigenously developed ;ight %ommercial Iehicle! &ndia#s first Sports Ftility Iehicle and! in 1//5! the Tata &ndica! &ndia#s first fully indigenous passenger car. 8ithin t o years of launch! Tata &ndica became &ndia#s largest selling car in its segment. The ).% in Mune! among hose facilities are &ndia#s only certified crash-test facility and hemi-anechoic chamber for testing of noise and vibration! has received several a ards from the =overnment of &ndia. Some of the more prominent amongst them are the 7ational A ard for .esearch and @evelopment )fforts in &ndustry in the 6echanical )ngineering &ndustries sector in 1///! the 7ational A ard for Successful %ommerciali?ation of &ndigenous Technology by an &ndustrial %oncern in 2222! and the %S&. @iamond Hubilee Technology A ard in 2224. The company set up the Tata 6otors )uropean Technical %entre ,T6)T%- in 222( in the F*. T6)T% is engaged in design engineering and development of products! supporting Tata 6otors# skill sets. Tata @ae oo %ommercial Iehicle %ompany and "ispano %arrocera also have .N@ establishments at =unsan in South *orea and Oarago?a in Spain. The pace of ne product development has <uickened through an organisation- ide structured 7e Mroduct 43

&ntroduction ,7M&- process. The process ith its formal structure for introducing ne vehicles in the market brings in greater discipline in pro>ect e1ecution. The 7M& process helped Tata 6otors create a ne segment! in 222(! by launching the Tata Ace! &ndia's first indigenously developed mini-truck. The years to come ill see the introduction of several other innovative vehicles! all rooted in emerging customer needs. +esides product development! .N@ is also focusing on environment-friendly technologies in emissions and alternative fuels. Through its subsidiaries! the company is engaged in engineering and automotive solutions! construction e<uipment manufacturing! automotive vehicle components manufacturing and supply chain activities! machine tools and factory automation solutions! high-precision tooling and plastic and electronic components for automotive and computer applications! and automotive retailing and service operations. True to the tradition of the Tata =roup! Tata 6otors is committed in letter and spirit to %orporate Social .esponsibility. &t is a signatory to the Fnited 7ations =lobal %ompact! and is engaged in community and social initiatives on labor and environment standards in compliance ith the principles of the =lobal %ompact. &n accordance ith this! it plays an active role in community development! serving rural communities ad>acent to its manufacturing locations. 8ith the foundation of its rich heritage! Tata 6otors today is etching a refulgent future.

2anu&acturin+:
Tata 6otors o es its leading position in the &ndian automobile industry to its strong focus on indigeni?ation. This focus has driven the %ompany to set up orld-class manufacturing units ith state-of-the-art technology. )very stage of product evolutiondesign! development! manufacturing! assembly and <uality control! is carried out meticulously. Dur manufacturing plants are situated at Hamshedpur in the )ast! Mune in the 8est and ;uckno in the 7orth. Gamshedpur: )stablished in1/4(! the Hamshedpur unit as the company#s first unit and is spread over an area of 522 acres. &t consists of 4 ma>or divisions - Truck 0actory! )ngine 0actory! %ab N %o l 0actories! and the 7ovus. )ngineering @ivision! hich has one of the most versatile tool making facilities in the &ndian sub-continent. #eport; )erception to!ards ,%,% J*anoK :

44

Luc:no>: Tata 6otors ;uckno is one of the youngest production facilities among all the Tata 6otors locations and as established in 1//2 to meet the demand for %ommercial Iehicles in the &ndian market. 4ttara:hand The company has set up a plant for its mini-truck! Ace! at Mant 7agar in Fttarakhand. The plant ill begin commercial production during the course of the year.

.esearch:
.esearch H 0e<elopment: .esearch provides the much-needed inspiration for the birth of ne ideas! hich in turn breathes ne life into products. 8orld-class automotive research and development are key factors that contribute to the leadership of the %ompany. #n+ineerin+ .esearch /entre =#./?: The .esearch %entre at Hamshedpur regularly upgrades components and aggregates. A ell-e<uipped torture track enables rigorous and e1haustive testing of modifications before they are used as regular fitments.

Sa&ety ,%.AS" T)ST 0A%&;&TB-:

0or Tata 6otors! safety is of paramount importance. This avenue provides no room for the slightest margin of error. Tata 6otors ).% is the only high-tech facility in &ndia to evaluate the degree of passenger safety in the event of any high-speed impact. Through a special crash test facility. @ifferent types of accidents are simulatedA the results analy?ed! and put to use in the development of a vehicle that satisfies stringent international safety norms. Special high-speed cameras record test crashes at the rate of 1222 frames per second. An accident! for instance! at the speed of (2 kilometers per hour! lasts one eighth of a second. Thus! 12( frames recorded by these cameras are available for study ith the completion of each individual test. 2inimi8in+ )oise ,A7)%"D&% %"A6+).-: Anechoic chamber is a highly sophisticated noise and vibration laboratory! the nerve centre of hich is a vast chamber lined ith 55!222 cones pro>ecting at various angles from the alls and ceiling. &t is one of its kinds in &ndia and is developed completely ith in-house facilities. 0esi+nin+ and Stylin+ ,%A@ %)7T.)-: The %A@ centre is e<uipped ith (3 state-of-the-art %A@ stations and the latest soft are. The %A@ centre is a vital organ of ).%#s %ab @esign Section. %A@ designing involves development of vehicle specifications! styling interiors and e1teriors! revie ing the styling from the engineering and aesthetic points of vie ! virtual prototyping to check for design acceptability and feasibility of manufacture.

TATA NANO
Tata 2otorsI plans >ould produce, in real terms, by &ar the cheapest car e<er made, An &ndian car may soon earn a parking place in history alongside 0ord#s 6odel T! 4(

Iolks agen#s +eetle and the +ritish 6otor %orp.#s 6ini! all of hich put a set of heels ithin reach of millions of customers after they rolled onto the scene. Tata 2otors is developing a car it aims to sell for about G2!(22 the cheapest! by far ever made.
# Source :=)JS#: TT2 - ne>s - people?

&ata "ano - &he little car that might change the %orld

&EC0 S4ECS
Len+th : 3.1 m 6idth : 1.( m Hei+ht : 1.3 m To seat : 4 #n+ine : 343cc! 2-cylinder! allaluminum 3o>er : 33 +"M 3osition : )ngine! battery at rear end Boot : &n front Fuel : Metrol Fuel in9ection : 6M0& Fuel consumption : 22 kmpl. '/ : Dnly in delu1e version 3assen+er side mirror : 7o 3o>er steerin+ : 7o 3rice : G2(22 at dealer T IAT T transport cost. +ase version appro1imate on-road priceE G3222 Tyres : Tubeless tyres. Body : All-steel Sa&ety &eatures : %rumple ?ones! intrusion-resistant doors! seat belts! 2 A-Millars Suspension : &ndependent front and rear Seldom do e see cars that re rite the history books even before they are seen running around on the roads. And hardly ever do e see cars that vo to put the nation on four heels. The Tata 7ano is one such car U a car that has been in the ne s for <uite a fe years! for reasons good and evil. 7ano is a car hich has breathed into life due to one man. =ive credit to 6r. .atan Tata for his determination to build a lo cost family car that has come true! finallyV Took long it did! but the 7ano came in a beautiful form. Touted as orld's cheapest car by a far cry! 7ano has been the talk of the to n around the globe. "ead honchos of big organi?ations have been pouring in by numbers to have a look at this engineering masterpiece. 8e bring you some interesting bits. Loo:s: Len+th 3122mm 6idth 1(22mm Hei+ht 1322mm 6heelbase 2232mm. 1round /learance U @"!mm Bou ill be ondering hy & am talking about the dimensions of the 7ano! since all of you kno that it is a rather compact and tiny machine. &t is because & have good reason to talk about the dimensions. Bou see! the 7ano is going to be faced ith 6aruti 522 as its main rival. +ut you could thro in the Alto and Oen )stilo to mark out some design and packaging aspects. Hust to get things in perspective! 7ano is over 232mm shorter than 522 in overall length but the heelbase advantage of 1((mm over the offering from 6aruti 43

makes sure that the 7ano is more accommodating than the 522. Tata has managed to s<uee?e out a 32mm advantage in idth and 6aruti 522 falls short of about 122mm in height. So in essence! you get more legroom! better shoulder room and room more than enough for a turban! if you ear oneV +ut before you enter inside! you are bound to gape in admiration at the beautifully crafted curves of this micro car. & personally feel that the front has a lot of Oen )stilo ritten on it! but manages to look really funky and cool.

The mono-vol me !e"#$n e"%&'l#"he" & "e& o( )h&n$e (*om %he %+o-'o, l&-o % o( %he .//0 Wh&% #% en" *e" %he N&no +#%h #" e,%*emel- "ho*% ove*h&n$" &n! %#$h% 1&)2&$#n$0 Fo* & )&* o( %h#" "#3e &n! #m&$e4 %he N&no #" &n e,%*emel- "e,- loo2#n$ )&* +#%h ( % *#"%#) !e"#$n ) e"0 The 'onne% l#ne #" "%ee1 &n! n#%e" %o$e%he* +#%h %he ' m1e* #n & "e&mle"" +&-0 Tho $h %he*e #" no 5$*#lle6 1e* "e4 %he (*on% h&" & "m#l#n$ loo2 +h#)h &))en% &%e" %he 5h&11-6 (eel#n$0 The (o$ l&m1" &*e #n)o*1o*&%e! #n %he ' m1e* +h#)h h&" & !#"%#n)% &#* !&m * nn#n$ &)*o"" #n 'e%+een %hem0 In 1*o(#le4 %he N&no *e"em'le" M#%" '#"h#6" l&%e"% "m&ll )&* 5#60 The *e&* o( %he N&no #" "ome+h&% *e)o$n#3&'le0 The %&#l l&m1" &*e #n"1#*e! (*om el!e* "#"%e*4 In!#)&0 So %h#" #" & ve*- )om1&)% h&%)h'&)24 -e"7 No m- (*#en!4 -o &*e m&""#vel- +*on$0 Even I +&" ! m'(o n!e! +hen I !#")ove*e! %h&% %he N&no )&nno% 'e )&lle! & hatchback U a
ord so true to the ay the small cars are. The reason for this is because it does not have a hatchV The tail gate cannot be opened o ing to it being >oined together ith the boot sill. This makes accessing the engine a pain in the bottom. +ut a hatchback it ill be called still. The back side of the 7ano is made attractive by the mid mounted e1haust pipe hich peeps out of the aggressively designed bumper.

The ultra-secret people's car for India - the Tata Nano - is here. How will this car change the way India, and the developing countries drive?
The 7ano is disruptive tech - make no mistake. The orld#s car manufacturers have e1pressed all shades of opinion in the run-up to the Tata 7ano. Su?uki has said that it is impossible I 8 said it is not hat they ant to do. @aimler%hrysler said they think it is an important market Tata is trying to tap. There as no ay Tata could design a car the conventional ay. So ent at it on a clean slate. And seems to have pulled it off. The rear engined car ill have a small boot for luggage storage in the front. &n the process of developing the 7ano! Tata 6otors has added 42 patents to its kitty. This car, i& it becomes a hit, >ill ma:e e<ery auto company chan+e the >ay it >or:s and loo: at the <olume mar:et, 7ot only in &ndia! but in entire Asia and every third orld country. Dffering mobility for the masses is big business. The I8 +eetle did that! and so did "enry 0ord.

Environmental Impact
&n &ndia! a car like this can cro d the streets! forcing the government to improve infrastructure - and as the evolution of the 8estern industrial society demonstrates! affordable cars can be a ma>or force for change. +ut till that happens! this is a car that can seriously cro d the streets - and make life a bit tougher in the short-term. The car >ill ha<e a t>o-cylinder B C-cc petrol en+ine >ith AA bhp o& po>er, &t ill also have a 32-litre fuel tank and four-speed manual gearshift. The car ill come ith air conditioning in the delu1e version! but ill have no po er steering. & kno ! that#s pathetic po er by American and 8estern standards. +ut &ndian ma1imum legal speeds are ay lo er than them - and Tata 6otors any ay claims that the car is as fast as the 6aruti 522! &ndia#s original Meople#s %ar that changed things a couple decades back. And there are a million or more of them on the streets of &ndia already. The car ill have front disk and rear drum brakes. The company claims mileage of 22 kmpl in city and 23 kmpl on high ay. The G 2(22 is the dealer price - the actual price on the road might be appro1 .s. G3222. The car launched is being avidly atched by the auto industry around the orld. 44

SAFETY
Masses crash tests. Side impact test yet to be done! but Tata is confident about it. &t has 2 A-pillars on one side to better meet safety norms. 7o airbags. Airbags are still not a re<uired feature in &ndia. +ut you have crumple ?ones! intrusion-resistant doors! seatbelts and anchorages. A four heeler is safe than a scooter. So to begin ith! the huge t o heeler population of &ndia gains a safety benefit. +ut ill it pass the safety re<uirements of a large car or even a high technology compact$ Fnlikely. +ut that is not the ob>ective - it is to improve the safety of four-member families like this one that rides scooters and at risk every day. And so here it is. &f Tata 6otors is right! e could be itnessing a serious disruptive force and one that might kick-start &ndia on to a high gro th path. Successful mass market mobility does that to a country.

(echanicals
)veryone! and it does not discount the motoring >ournos! e1pected the WDne ;akh %ar' to have a plastic body. +ut boy did Tata play it big thereV %ontrary to everyone's belief! the 7ano is a metal-bodied car ith four full-blo n doors to ease the ingress and egress. This is a uni-body construction but makes use of a sub-frame hich adds to the strength in addition to providing support for drive train and suspension units. The suspension has a story of its o n altogetherV 8ell! Tata engineers said that since the rear-biased eight distribution led to some scary moments hile testing the car! they had to optimi?e the suspension setup and add a fair amount of other eccentric but e<ually helpful technical add-ons like fatter rear tyre hile the battery bo1 and fuel tank are placed right underneath front occupants. The engine is hat has been the bu?? ord around the car. &t is an all-aluminum t o cylinder engine displacing 324cc move ith t o valves per cylinder driven by a single overhead hich ill peak out at ((22rpm hile 457m of turning camshaft. The bore and stroke are nearly similar giving it a Ws<uare' form. 6aking the 7ano ill be the po er of 33 horses force ill be supplied at a meager 2(22rpm hich should help the drivability of the car. The 7ano ill transmit its small amount of po er via a 4-speed cable operated gearbo1 ith the fourth being an overdriven ratio. Tata is ell but that ill not be available orking on developing an automatic gearbo1 as hen the car gets launched later this year. &n addition to

the 324cc petrol engine! the &ndian auto giant might also bring out a common-rail diesel engine ,422cc- hich might be of the same architecture as the one seen on Tata Ace.

45

DATA ANALYSIS 8 INTERPRETATION

15 DE(,G.A40*C A"A-/S*S
6EN*ER
2ale Female Total 34 33 122

,able 1.1

The above mentioned chart clearly sho s that out of 122 respondents 34 ere males and 33 ere females. A6E *I TRIB!TION

4/

,able 1.$

yrs A!-5! yrs 'bo<e 5! yrs Total

34 32 4 122

The above mentioned chart clearly sho s that ma>ority of the respondents lies bet een the age group of 15-(2 yrs. &ROFE ION

Table 738

(2

The above mentioned chart clearly sho s that out of 122 respondents 34 ere males and 33 ere females. A6E *I TRIB!TION

,able 1.$

The above mentioned chart clearly sho s that ma>ority of the respondents lies bet een the age group of 15-(2 yrs. &ROFE ION

Table 738

(1

The above mentioned chart sho s that data as collected from respondents having varied types of occupation. The ma>ority of the respondents ere pvt. sector employee and students.

INCOME 6RO!&
(2

,able 1.6

'5 FAC&,. A"A-/S*S

To understand the various parameters affecting the perception of the mass to ards TATA 7ano! the respondents ere intervie ed ith the help of <uestionnaire mentioned in the appendi1 having the variables found from the secondary data. 0urther analysis as done through factor analysis ith the help of SMSS soft are. The goal of the factor analysis is to reduce the no. of original set of variables to a smaller set of comprehensive factors for use (3

in subse<uent multi-variant analysis. Therefore through the factor analysis the 13 variables that the perception of the mass can be reduced to lesser no. of comprehensive factors that can e1plain the other variables. This shall reduce the comple1ity. The output e get after compiling the input data isE

6(, and 7artlett+s &est Table ,@

0rom this table it can be interpreted that the value of *6D is greater than 2.(! hich means that our research data is appropriate and valid. *6D value is greater than 2.( because no. of respondents ere more than ( times the no. of the decision variables.

&a3le '5' &otal 2ariance Explained

7o from the above table of SMSS output the total no. of factors in hich the variables can be classified can be reali?ed. 0rom the )igen values of each factor in the table! the factors having )igen value greater than 1! shall be considered for further analysis. As in this case the )igen value of 4 factors is more than 1! so the no. of factors shall be 4. The percentage of variance column sho s that the total variance e1plained by each factor. (4

As in this case the 1st factor e1plains the total variance up to 2/.2/4 P! similarly the entire factors e1plains the variable. Fpto 35.523P of the variables are e1plained by the 4 factors. &t means 31.144P are e1plained by other factors hich have not been taken into account.

&a3le '5) .otated Component (atrix8a9

)1traction 6ethodE Mrincipal %omponent Analysis. .otation 6ethodE Iarima1 ith *aiser 7ormali?ation. a- .otation converged in 4 iterations.

0rom the above table of output e can identify the distribution of each variable in our selected factors. Dur 4 factors are as follo s -

Factor@ X 0esi+n ,; value X ./(2- T Sa&ety ,; value X ./1/- T '&&ordability ,; value X

.552- T 2antainence ,; value X .532- T 3o>er ,; value X .424- shall be combined together to get our 1st ma>or factor! e may name as J . This factor is e1plaining 12/.243 P of the variation.

Factor

X /om&ort ,; value X ./24-T Li&estyle ,; value X .5/5- shall be combined

together to get the 2nd ma>or factor! e may name as J J. This factor is e1plaining 13.11( P of total variation.

FactorA X Status ,; value X ./24- T 'ccessories ,; value X ./32- shall be combined

together to get the 3rd ma>or factor! hich e may name as W J. This factor is e1plaining 13.325P of total variation.

FactorC K Interior Space ,; value X .522-. This factor is e1plaining 12.224P of total
variation.

((

)5 A!A.E"ESS ,F &A&A "A",

,able 3.1 4#esponses over %!areness5

The above mentioned pie-chart ,=raph 3.1-and table ,Table 3.1- sho s that ma>ority of the respondents ere a are of the TATA's 7ano.

:5 ACCE4&A"CE -E2E- ,F &A&A;S "A",

To find out the acceptance level! the respondents ere intervie ed over their liking to ards TATA 7ano and their Mlan to buy on a likert scale. 0ollo ing ere the responsesE ,able 6.14#esponses over %cceptance5 (3

0rom the above mentioned chart it can be realised that liking of the respondents to ards TATA 7ano is very high i.e. TATA 7ano is liked by most of the respondents. +ut there is mi1ed responses over their plan to buy TATA 7ano. There ere around 42 respondents ho may buy TATA 7ano and there 32 respondents ho may not buy. The rest 25 ere neutral.

<5 "A(E 1=S&*F*ES &0E 4.,D=C&

(4

The =raph (.1 sho s that most of the respondents believe that the name J7A7DK >ustifies the product.

B, )')* *F#. BI7#

6ost of the respondent ill not prefer purchasing J+ikeK over 7anoK.

$, F#'T4.# TH'T I)S3I.#S TH# 2*ST T* B4J )')*

(5

Mrice is the ma>or feature of J7A7DK that inspires respondents the most.

", /*L*4.

6ost of the respondents preferred yello J7A7DK.

and red colour as their preferred colour for

>5 .EC,((E"DA&*," ,F "A",

(/

0rom the above mentioned graph it can be observed that most of the respondents shall recommend J7A7DK to others.

1?5 "A", AS @[Link]( CA.A

&t can be observed from the chart that ma>ority of the respondents do not see J7A7DK as their dream car.

115 C-=S&E. A"A-/S*S

%luster Analysis is performed to assign the ob>ects into groups ,called clusters- so that ob>ects from the same cluster are more similar to each other than ob>ects from different clusters. Therefore in this research! the sample of 122 respondents can be classified into certain no. of groups or clusters sho ing the same attributes. This form of analysis ill basically help the marketer to position their product in a much effective ay by targeting a certain group of individuals. Therefore it is important for the research to find as to hich 32

cluster of people TATA 7ano should be targeted. "ere the grouping variables are a+e, se;, pro&ession, monthly income, &amily members, a>areness o& T'T' )ano, li:in+ and plan to buy )ano. After running cluster analysis through SMSS soft are using the above mentioned grouping variables! follo ing output as obtainedE

Agglomerative hierarchical clustering

0irst step for clustering shall be Agglomerative hierarchical clustering hich breaks up ,divisive- a hierarchy of clusters. Therefore through hierarchical clustering an idea of the no. of clusters into hich the sample should be classified can be obtained. This is done using JAgglomeration ScheduleK mentioned in Appendi1. 0rom this agglomeration schedule it can be observed that the no. of clusters should be 2 or 3. The ne1t step of classification of sample into clusters is done through *-means clustering.

6-means Clustering
After running the *-means clustering by entering the no. of clusters as 3! follo ing output as obtainedE

CL! TER 74 This cluster includes 13 respondents. The ma>or characteristics of this cluster are that most of them are females! the age group is bet een 15-(2yrs! the ma>or profession is Mvt. Sector employee and students! monthly income is above .s. 22222! Avg. no. of family members are 3! all are a are of the TATA's 7ano! they some hat like TATA's 7ano but they don't plan to buy it. CL! TER 94 This cluster includes 32 respondents. The ma>or characteristics of this cluster are that most of them are males! the age group is bet een 15-32yrs! the ma>or profession is Mvt. Sector employee and govt. employee! average monthly income is around .s. 12222-.s.1(222! Avg. no. of family members are 4! all are a are of the TATA's 7ano! they some hat like TATA's 7ano but they don't plan to buy it. CL! TER 84 This cluster includes (( respondents. The ma>or characteristics of this cluster are that most of them are males! the age group is bet een 15-32yrs! the ma>or profession is Mvt. Sector employee and students! average monthly income is above .s. 22222! Avg. no. of family members are 4! all are a are of the TATA's 7ano! they some hat like TATA's 7ano but they have larger orientation to ards buying TATA 7ano. Therefore! TATA 7ano should target cluster 3 due to higher intend to purchase! family
members are 4 hich are suitable for TATA 7ano. 31

Con)l "#on 8 Re"e&*)h F#n!#n$"

9 TATA 7ano's a areness level is very high ,/2P- i.e. most of the people are a are about Tata 7ano. This has been due to many reasons like controversy in JSingurK! first people's car in >ust .s. 1 lakh! brand name of TATA linked ith 7A7D etc. This is a very good sign for TATA 7ano to capitali?e on their public relations. L Mrivate Sector employees and students have higher degree of acceptance level for TATA 7ano. L The most important factors that affect the purchasing decision of the people to purchase a small car like J7A7DK are @esign! Safety! Affordability! po er! comfort! lifestyle! accessories status and interior space. L .esearch sho s that the name J7A7DK is very ell accepted by the people as most of them believe that J7anoK >ustifies the product. L &t as also observed in the research that ma>ority of people shall not prefer J7anoK over J+ikeK as they believe that bike has some additional benefits over J7A7DK. L JMriceK as the most important feature that shall inspire most of the people to purchase J7A7DK. As the car is available in .s. 1 lakh only therefore most of the people believe that it is affordable to them. L J+lueK and JBello K are the most demanding color that shall be preferred by most of the people for their J7A7DK. L &t has also been found out through research that most of the people shall recommend TATA's 7ano to other hich is a very good sign for TATA 6otors. L Also! most of the respondents believe that J7A7DK is not their dream car.

32

B#'l#o$*&1h- 8 Re(e*en)e"
9 )1ploratory 0actor Analysis - A +ook 6anuscript by Tucker! ;. N 6ac%allum .. ,1//3-. .etrieved Hune 5! 2223! fromE httpEQQ .[Link] .htm L .aymond %attell. .etrieved Huly 22! 2224! fromhttpEQQ .[Link] L ). +. 0o lkes N %. ;. 6allo s ,September 1/53-. CA 6ethod for %omparing T o "ierarchical %lusteringsC. Journal of the American Statistical Association $" ,353-E ((3U (54. doiE12.2324Q2255114 L Schutt! .ussell *. 2223. C&nvestigating the Social 8orldE The Mrocess and Mractice of .esearchC. SA=) Mublications L 6ohanty! 6rituin>oy ,2225-21-12-. C8hy criticising the 1-;akh car is rongC. .ediff 7e s. httpEQQ .rediff.comQmoneyQ2225Q>[Link]. .etrieved on 2225-21-12. L Tata#s "igh-Stakes +et on ;o -%ost %arC. The 8all Street Hournal! )ric +ellman! Han 12! 2225. httpEQQonline. s>.comQarticleQS+11///312243124/5([Link]. L 0irst ;ookE .atan Tata unveils 7anoC. &+7. 2225-21-12. httpEQQ .[Link] sQfirstlook-ratan-tata-unveils-nanoQ([Link]. .etrieved on 2225-21-12. L C@eutscher *on?ern verdient am Tata krZftig mitC ,in =erman-. Die Welt. 12 Hanuary 2225. httpEQQ . [Link] irtschaftQarticle1(33553QTata[7ano[[der[indische[Iolks [Link]. .etrieved on 2225-23-22. L [Link].comQ7e sQ7e s[+y[&[Link][+a >a>[says[6amata[fought[for[farmers[not[politicsQarticlesho Q34(32([Link] L httpEQQ .[Link] s[>an[[Link]

L [Link].comQ7e s[by[&ndustryQ7ano[to[rollout[from[MantnagarQ articlesho Q3([Link] L httpEQQ .[Link] [Link]

L [Link].comQarticleQtop7e sQid&7&ndia-3(544422251224 2225 &ssues L httpEQQ L httpEQQ .[Link].ukQtolQdrivingQarticle313422(.ece .[Link]

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