TATA NANO

INTRODUCTION• Tata Nano is the cheapest car in the world. • IT is manufactured by Tata Motor Limited, the largest

automobile company in India.• Mr Ratan Tata envisions that Tata Nano to become a

“People’s car “ which is affordable by almost everybody.

• Within the first two days of lunching, it has received 5500 booking. The figures keep increasing every day since the launching.

IDEATION• According to Ratan Naval Tata (Chairman of Tata

Group), the need for an innovation like Nano has got to do something for the people of India and transport. Unavailability and poor quality of mass transport is a common problem in India. In a two wheeler, father driving with elder child standing in front and wife behind holding a baby is norm in this country. Thus, this is a relatively an unsafe mode of transporting a family. Thus, with this in mind Tata Nano was created as a safer form of transport.

Comparison analysis of Nano with other cars

TERMS TATA NANO HYNDAI SANTRO

MARUTI 800 MARUTI ALTO

CHEVORLETSPARK

ENGINE 624cc 2cylinder inline, 4 speed manual

10866cc 4cylinder3valves cylinder, 5 speed manual/4 speed at

796cc 3cylinder 2 valves cylinder ,4 speed manual

796cc 3 cylinder 4 valves cylinder,5 speed manual

955cc 4cylinder, 2valves cylinder

TOP SPEED 106km 145km 108 km 138km 153km

FUEL EFFICIENCY

25kmplclaimed

12.5kmpl 15.72kmpl 14.85kmpl 16.45

OBJECTIVES

• Want to achieve 25,000 units of sales gaining ….market share % get from market size

• Want to achieve 10% increase in quarterly basis

• Want to make transport easily available to common man.

Promotion

• Promotion Tag line‘Have Fun, Pay Less, get more with Tata Nano’Advertising Program• Online Advertisement –www.tatanano.com• No other advertisement to lower cost of

nano

Product Review

• Stylish and comfortable• Fuel-efficient engine• Meets all safety requirements• Meets all safety requirements

TARGET MARKET

• The company is targeting lower income group with family

• First-time buyers of car (fresh graduates) • Motorcycle owners.

Positioning

• Tata Nano will position itself as the world cheapest car and yet does not compromise the quality, safety and environment. This positioning will be achieved by leveraging Tata Nano’s competitive edge: industries experience from the parent company Tata Motor who has been in vehicles industries (commercial, passengers & utilities) since 1945. Tata motor has good supplier-manufacturer relationship with more than 100 components

What makes Nano so cheap

Break even analysis• Break even analysis indicates that 3369 unit or $ 46,168,776 will be required in monthly sales revenue to reach the

break even point.• Table: Break Even Analysis• Break even analysis :•

• Monthly unit break even 3369• Monthly sales break even• $46,168,776• Monthly unit production 6083 1000 2000 3000 4000 5000 6000 7000

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

fixed costtotal costtotal revenue

Difficulties and risks• Slow sales resulting less than projected cash

flow• Unexpected and excessive cost increase

compared to the forecasted sales• Significant economic downturns

Drawbacks

• Body of the car is made of plastic • Fuel tank capacity just 30 ltrs• Already cases of the car catching fire • Lack of all safety features such as no disc

brakes, engine is on the rare side so head on collision will have a greater impact on passenger, body is made of superlight material almost resembling fiber material

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