In the post globalized era where India is looking at growth rates of more than 8%, one of the main beneficiaries of India’s growth story is Automobile Industry. Termed as“Industry of Industries” . Automobile industry has been one of the indicators of a country’s economic prosperity, as major population of Indian economy is turning out as middle class society. Prior to the 1991 liberalization, auto industry in India was controlled and licensed by the government. Post 1991, the industry has grown at an average rate of 17%. Currently contributing to around 5% of the GDP, this is expected to rise to 10% of GDP.
TATA NANO: Overview
TATA Nano is the cheapest car in the world. It is manufactured by TATA Motor Limited, the largest automobile company in India. Its chairman, Mr. Ratan Tata envisions that Tata Nano to become a “People’s car” which is affordable by almost everybody. Tata Nano is manufactured totally in India. Its assembled in its two factories atPantnagar and at Uttarakhand and also have a mother plant at Sanand Gujarat. What makes Nano so cheap? It has small and light engine, a 623cc two-cylinder petrol engine made of aluminum. Factors that contribute towards the weight reduction are the usage of hollow steering wheel shafts, plastic body panels and smaller tubeless tires. As a result of these measures, Tata Nano weighs only about 590kg. Lesser weight and fewer parts mean less raw material and lower cost for Tata Nano. Vision and Innovation are successfully implemented without compromising the safety and environmental compliance.
Analysis of Market Offerings:-
1. Markets across the Countries:- First targeted market was the low income Indian families and lower middle class population. Now its expanding its market in other countries such as Malaysia, the rest of Asia, Europe, Africa and South America.The car was in 78-th Geneva Motor Show 2008. This helped to make the image of car in other countries than the existing ones back home in India 2. On the Web:- Considering the needs of the Market its website was launched in the beginning. Website is quite comprehensive and provides all the answers to the questions being asked since the start of the project. The marketing team has put a good effort to keep the website simple and easy to use and understand. Now one can find the Nano on Facebook, Orkut and Twitter. 3. Bank Finance :- TATA is keeping its promise of “people’s car” by providing bank car financing. NANO has made the way for the people who can’t afford to pay the price with the booking of the car. The 15 major banks including the state bank of India have been signed with the TATA to finance the low income people.
The Key Marketing Features:-
1. Affordability :-
* Tato Nano is priced around Rs.1 Lac .Which is almost half the price of the cheapest car in India, Maruti Suzuki, which is priced around 2 Lacs. * The low maintenance cost is a big issue, to maintain this car by oneself in a rough country is very easy and cheaper. * The small size of the car gives a big advantage of parking in a densed Indian roads .
2. Warranty :- Its providing a 18 months Or 24000 Kms. warranty. Its not very good as compared to what one gets at the international level but it is still sounds good and once it is considered in price, fuel consumption and being eco friendly.
3. Fuel Efficient :- Tata Nano has a mileage of 21.97 kilometer per liter, under city road conditions, and 25.97 km/L on highways. This makes Tata Nano a fuel efficient vehicle, which will save money in the long-term. This mileage comes with an engine of 623 cc with a maximum speed of 105 Kmph.
4. Environment Friendly :- Tata Nano emits less carbon than two-wheelers. It also meets emission norms of BS II, III, IV which are Euro II, II, IV equivalent.
MARKETING FOCUS – STP ANALYSIS:-
1. The target customers
* Lower and Middle Income families,who aspire to upgrade to 4- wheelers from...