Marketing Plan for the Tata Nano

Topics: Tata Nano, Tata Motors, Automobile Pages: 5 (1628 words) Published: January 13, 2012
Tata Group


Manu Joseph
Section C
PRN: 147

Executive Summary
The Tata Nano is an inexpensive, rear-engined, four-passenger city car built by the Indian company Tata Motors and is aimed primarily at the Indian domestic market. Tata Motors began selling its "one-lakh car" in March, 2009. This nickname is due to the Nano's price point, near 100,000 (one lakh rupees). Tata Motor Chairman, Mr Ratan Tata envisions that Tata Nano to become a “People’s car“ which is affordable by almost everybody. What makes Tata Nano so cheap? Basically, by making things smaller, lighter, do away with superficial parts and change the materials wherever possible without compromising the safety and environmental compliance. It is said that Tata Nano has better millage than Toyota Prius and same gas emission as a scooter. In 2008 the Financial Times reported: "If ever there were a symbol of India’s ambitions to become a modern nation, it would surely be the Nano, the tiny car with the even tinier price-tag. A triumph of homegrown engineering, the Nano encapsulates the dream of millions of Indians groping for a shot at urban prosperity." The Nano's design implements many cost-reducing innovations. * The Nano's trunk is only accessible from inside the car, as the rear hatch does not open. * One windscreen wiper instead of the usual pair

* No power steering, unnecessary due to its light weight
* Three lug nuts on the wheels instead of the usual four
* Only one wing mirror
* No radio or CD player
* No airbags in base model
* 623cc engine has only 2 cylinders
* No air conditioning in base model
Tata Motors has set the stage for the all new diesel version for its wonder car again aiming to sky rocket its car sales. It is expected to be an excellent option for those who are looking forward for a low priced fuel efficient car. Tata Nano diesel variant is assumed to be powered with 600 to 700 cc mill. Well Tata Nano is expected to come with an increased price tag compared with the petrol version. Currently the wonder car comes with a price tag starting from Rs 1,15,361 - Rs 1,88,513 (ex-showroom, New Delhi). Situational Analysis

The situation analysis can be conducted by way of the 4C framework. 4C stands for customer, competitor, company and context. Customers
Tata Nano was launched with the aim to help the families who cannot afford four wheelers and has to manage on their two wheelers. The dream of its makers was in making which rightly captured the domestic auto market. When launched in 2009, the car faced great uproar and due to that it had to shift its manufacturing unit to Gujarat. In the first year while it was enjoying high sales in the Indian auto market, suddenly, there were news which related to the mini cars safety issues, as various incidents of the mini car catching fire was reported. But now it is again catching up demand in the Indian auto market. Competitors

Although Tata is an established market and Tata Nano is the only player currently in its segment the scenario is about to change very soon. Renault, Nissan and even GM have plans to enter into the small car market. Tata Nano vs Bajaj Small Car

Bajaj Auto, the country's second biggest two-wheeler maker, said it plans to bring out its small car in collaboration with Renault and Nissan within four years but it will not be for Rs 1 lakh (Rs 100,000). Tata Nano vs Piaggio

Piaggio is one of the major players in the commercial vehicle segment and has been quite keen on entering the small car segment with a new concept called as Piaggio NT3. The Italian two wheeler maker is all set to introduce the NT3 in two models with different engine capacities by the end of 2012. The car has been designed specifically for price sensitive markets like ours. Company

Tata Nano has the strong muscle of Tata Motors behind them. Tata Motors is India’s largest automobile company, with consolidated revenues of 9,274 crore (US$2.07...
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