INTRODUCTION

OF TOPIC

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“A COMPREHENSIVE REPORT ON LEVEL OF
SATISFACTION TOWARDS TATA NANO”

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Seldom do we see cars that rewrite the history books even before they are
seen running around on the roads. And hardly ever do we see cars that vow
to put the nation on four wheels. The Tata Nano is one such car – a car that
has been in the news for quite a few years, for reasons good and evil. Nano is
a car which has breathed into life due to one man. Give credit to Mr. Ratan
Tata for his determination to build a low cost family car that has come true,
finally! Took long it did, but the Nano came in a beautiful form. Touted as
world’s cheapest car by a far cry, Nano has been the talk of the town around
the globe. Head honchos of big organizations have been pouring in by
numbers to have a look at this engineering masterpiece. We bring you some
interesting bits.

Looks:

Numbers first.
Length – 3100mm
Width – 1500mm
Height – 1600mm

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Wheelbase – 2230mm.
Ground Clearance – 180mm

You will be wondering why I am talking about the dimensions of the Nano,
since all of you know that it is a rather compact and tiny machine. It is
because I have good reason to talk about the dimensions. You see, the Nano
is going to be faced with Maruti 800 as its main rival. But you could throw in
the Alto and Zen Estilo to mark out some design and packaging aspects. Just
to get things in perspective, Nano is over 230mm shorter than 800 in overall
length but the wheelbase advantage of 155mm over the offering from Maruti
makes sure that the Nano is more accommodating than the 800. Tata has
managed to squeeze out a 60mm advantage in width and Maruti 800 falls
short of about 100mm in height. So in essence, you get more legroom, better
shoulder room and room more than enough for a turban, if you wear one! But
before you enter inside, you are bound to gape in admiration at the beautifully
crafted curves of this micro car. I personally feel that the front has a lot of Zen
Estilo written on it, but manages to look really funky and cool.

The mono-volume design establishes a sea of change from the two-box

layout of the 800. What it ensures the Nano with is extremely short overhangs
and tight packaging. For a car of this size and image, the Nano is an
extremely sexy looking car with futuristic design cues. The bonnet line is
steep and unites together with the bumper in a seamless way. Though there
is no ‘grille’ per se, the front has a smiling look which accentuates the ‘happy’
feeling. The fog lamps are incorporated in the bumper which has a distinct air
dam running across in between them. In profile, the Nano resembles
Mitsubishi’s latest small car ‘i’. The rear of the Nano is somewhat
recognizable. The tail lamps are inspired from elder sister, Indica. So this is a
very compact hatchback, yes? No my friend, you are massively wrong. Even I
was dumbfounded when I discovered that the Nano cannot be called a
hatchback – a word so true to the way the small cars are. The reason for this
is because it does not have a hatch! The tail gate cannot be opened owing to
it being joined together with the boot sill. This makes accessing the engine a

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pain in the bottom. But a hatchback it will be called still. The back side of the
Nano is made attractive by the mid mounted exhaust pipe which peeps out of
the aggressively designed bumper.

Tata Nano: World’s Cheapest Car from Tata Motors

World’s cheapest car, Tata Nano has been unveiled in the 9th annual New
Delhi Auto Expo today. With lots of hypes and expectations, this four-door car
was made public in a festive mode. Lots of public interests created for this
much-awaited Rs one lakh car, which many think, to be instrumental in
people’s dream to shift from a two wheeler to a four wheeler. Tata Motors has
dubbed it as ‘People’s Car’, indicating its involvement to the people of root
level.

Nano is a supermini car which has some advantages over its competitor
Maruti 800, which brought out a revolution in the Indian car industry about two
decades ago. Nano has 21% more interior space with 8 % less in its exterior
from Maruti 800. Moreover, the price is deemed to give the biggest market
advantage to Nano compared to other automakers in India’s price sensitive
market. Tata Motors has already selected a place for the manufacturing plant
of Nano in Singur, a backward area of Hoogly district in West Bengal.

Actually, Tata Nano is going to create new market segment in Indian market.
It is expected to lessen the difference in price level between two wheelers and
four wheelers. So, industry analysts are thinking that the market of two
wheelers will be affected with the advent of Nano. Industry analyst Deepak

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Jain has said in an interview that about 10% of two-wheeler market will be
taken away by Nano.

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Money Control reported:

Q: Do you think there would be a very conscious shift with the launch of this
product from the two-wheelers space to an upgraded product choice by the
consumers?
A: If we look at, who can buy this product? With a Rs 30,000 down payment,
you can take a loan of around Rs 1 lakh and EMI works out to be around Rs
3,716 per month. With just Rs 3,700 per month on an EMI, I believe anybody
can afford this product. As far as the shift is concerned, initial estimates is
around 10% of the two-wheeler market can actually shift towards the small
car.

There are many others who think Nano will bring out a big change in the auto
industry of Indian. Some even see it as a revolutionary car to hit the costs of
car in India. However, there are many who are not satisfied with Nano in
relation to safety and environmental concerns. They fear that the car will
increase the number of cars in Indian roads significantly and thus the amount
of emission will be increased as well- accelerating the global warming. Tata’s
competitors are not that much satisfied with the launch of their new product
indicating its safety concern.

However, Tata’s Chief patron Ratan Tata has denied all those speculations.
Terming Nano ‘People’s Car’, the 70-year-old business tycoon has expressed
that the car meets all the safety standards and Nano will have lower pollution
level.

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AFP reported:

Tata, likened by India's media to US automobile pioneer Henry Ford, also

dismissed fears the Nano -- so-called to appear both high-tech and small --
would herald more congestion and pollution.

He said he wanted to make "a safe, affordable and all-weather transport -- a

people's car, designed to meet all safety standards and emissions laws and
accessible to all."

"Let me assure you and also assure our critics the car we have designed will
meet all the current safety requirements ... and will have a lower pollution
level than even a two-wheeler being manufactured in India today," Tata said.

Established in 1945, Tata Motors is now one of the leading automakers in

India. From 2001- 2006, Tata Motors flourished more and was listed in the list
of top ten wealth creators in India. About five years ago, Ratan Tata first
declared to introduce a car with a price level of Rs. 100,000. From then on,
the one lakh car was one of the most talking points in India’s auto market.

The car includes some alluring features despite its cheap price. With 623 cc
engine, the car has a mileage of 22 kmpl in the city roads and 26 kmpl in
highways. So, it is obviously something special for the Indian people. The car
will be available in different variants in which one will be standard and two
other deluxe variants with air conditioning.

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Reuters reported:

* Engine: Rear-wheel drive, 2-cylinder, 623 cc, multi-point fuel-injection petrol

engine. Engine is rear mounted. Tata said it was the first time a 2-cylinder
gasoline engine was being used in a car with single balancer shaft.

* Safety: Tata said the Nano has an all sheet-metal body, with safety features
such as crumple zones, intrusion-resistant doors, seat-belts, strong seats and
anchorages, and the rear tailgate glass bonded to the body. Tyres are
tubeless.

* Environment: Tata said tailpipe emission performance exceeded current

regulatory requirements, and the Nano had a lower overall pollution level than
two-wheelers made in India. It said high fuel efficiency (20 km/litre) ensured
low carbon dioxide emissions.

Tata Nano was the center of all attention today in the Delhi Auto Expo. There
were some other cars from other companies. However, Nano took away all
the media and public attention. Nano had lots of admirers today following its
launch. Commerce Minister Kamal Nath has dubbed the launching of Nano as
a proud moment for India. According to Mr. Nath, Nano will fulfill the common
man’s dream.

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Economic Times reported:

"It is a proud moment for India. It demonstrates India's technological and

entrepreneurial ability. The car will help people move from two-wheeler to
four-wheeler and it will leap-frog the two-wheeler," he said at the Auto Expo
today.
"It fulfills the need of the common Indian who aspires to move from a two-
wheeler to a four-wheeler," he added.

So, it seems that Tata Nano is going to rock the Indian roads in the days to
come. If the car maintains its promised services, then Nano will definitely
surge the streets of India with lots of people’s dream come true. Well, it will be
interesting to see how other Indian auto makers respond to the launch of
Nano. As it is expected that two-wheeler market is going to be affected most
by the car creating a new market segment, it is high time other car makers
should come up with their innovative products to grab the share of new
segment. However, till then, it is Nano to be dominating the local car market.

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 ABOUT “TATA NANO”

THE NANO CHASE :

March 2003: Ratan Tata revealed plans to make world’s cheapest car at
Geneva Motor Show.

May 2006 : Previous site for Nano plant:-Singur.

Oct 2006 : Political opposition by Trinamool Congress.

May 2007:Peace talks between state & TC fails; one more farmer commits
suicide.

Jan 2008: Ratan Tata unveils Nano at Delhi Auto Expo ; Calcutta HC terms
Singur land acquisition legal.

May 2008: Supreme court refuses to stay Nano roll-out from Singur.

Aug 2008 : Ratan Tata threatens to exit Singur; after assault factory worker
stay away from work.

Oct 2008: Tata ready to pull out of the Nano plant from Singur and declares
sanand(Gujrat) as the new manufacturing location.

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Mar 2009: Unveils the European version of Nano at Geneva Motor Show.

23rd Mar 2009: Nano launched.

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CONCEPT AND DESIGN:

The project to create the world's cheapest production car began in 2003,
under the Chairman of Tata Motors, Ratan Tata, inspired by the
number of Indian families with two-wheeled rather than four-wheeled
transport. The Nano's development has been tempered by the
company's success in producing the low cost 4 wheeled Ace truck in
May 2005.
Contrary to speculation that the car might be a simpe four-wheeled auto
rickshaw, The Times of India reported the vehicle is "a properly
designed and built car".The Chairman is reported to have said, "It is not
a car with plastic curtains or no roof — it's a real car."
To achieve its design goals, Tata has refined the manufacturing process,
emphasized innovation and sought new design approaches from
suppliers. The car was designed at Italy's Institute of Development in
Automotive Engineering — with Ratan Tata requesting certain
changes, such as the elimination of one of two windscreen wipers.

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The Nano has 21% more interior space and an 8% smaller exterior compared
to its closest rival, the Maruti 800. The car will come in different
versions, including one standard and two deluxe models. The deluxe
version will have air conditioning, but no power steering. The initial
production target set by Tata Motors is 250,000 units per year.

COST SAVING METHODS:

The Nano's boot does not open, instead the rear seats can be folded down to
access the boot space.
It has a single windscreen wiper instead of 2
Some exterior parts of it are glued together, rather than welded
It has no power steering
It's door opening lever is much simpler

PRICE:

Tata initially targeted the vehicle as "the least expensive production car in
the world"— aiming for a starting price of 100,000 rupees or
approximately US$2000 (using exchange rate as of March 22, 2009) 6
years ago, despite rapidly rising material prices at the time.
As of August 2008, material costs had risen from 13% to 23% over the car’s
development,and Tata faced the choice of:
introducing the car with an artificially low price through government subsidies
and tax-breaks, or
forgoing profit on the car, or
using vertical-integration to artificially boost profits on cars at the expense of
their materials industries, or
partially using inexpensive polymers or biodegradable plastics instead of a full
metal-body, or

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raising the price of the car
Subsequently however material prices dropped dramatically as a result of the
financial crisis of 2007–2009.

COMPARISON:

Overall Length 3099 mm

Overall Width 1495 mm (& 1620 mm with ORVM)
Overall Height 1652 mm
Wheelbase 2230 mm
Ground clearance 180 mm Min.
Turning Circle Radius 4 m Seating Capacity 4 persons
Fuel Tank Capacity 15 Liters
Nano:600 kg
Nano CX:615 kg
Nano LX:635 kg

ENGINE AND SPECIFICATION:

Engine specification:

Engine Type 624 cc, 2 cylinder, MPFI Maximum Engine Output 35 PS @

5250 rpm Maximum Torque 48 NM @ 3000 +/-500 rpm Maximum
Speed 105 kmph Gradeability 30% Transmission Synchromesh on all
forward gears,? sliding mesh on reverse gear with overdrive on 4th gear
No. of Gears 4 Forward + 1 Reverse
Front Independent, Lower Wishbone, McPherson Strut with gas filled
dampers Rear Independent, Semi Trailing arm with coil spring & gas
filled shock absorbers

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Brake Type Dual Circuit, Vertical Split operated by tandem master cylinder
Nano CX With Vacuum Booster Nano LX With Vacuum Booster
Front 180 mm dia. drum brake Rear 180 mm dia. drum brake
Tyre Type Radial & Tubeless Front Tyre size 135/70 R12 Rear tyre size
155/65 R12 Spare tyre size 135/70 R12 Wheels 4 B x 12

SUSPENSION AND BREAKES:

Front :Independent, Lower Wishbone, McPherson Strut with gas filled

dampers
Rear: Independent, Semi Trailing arm with coil spring & gas filled shock
absorbers.
Brake Type Dual Circuit, Vertical Split operated by tandem master cylinder
Nano CX With Vacuum Booster
Nano LX With Vacuum Booster Front 180 mm dia. drum brake Rear 180 mm
dia. drum brake

WHEELS AND TYRES:

Tyre Type Radial & Tubeless

Front Tyre size 135/70 R12
Rear tyre size 155/65 R12
Spare tyre size 135/70 R12 Wheels 4 B x 12

Features:

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Eco-friendly models and initiatives:

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 Tata Motors is reportedly working on some very revolutionary and
eco-friendly initiatives, some of which are personally-supported and
appreciated by Mr. Ratan Tata. Other than their Gasoline engine, Tata
Motors will offer following options

Compressed-air engine:

Tata Motors is working with a French firm on using compressed air

as an energy source which is eco-friendly and revolutionary in itself for
a car of such large-scale. The company has tied up with Moteur
Development International (MDI) for this purpose.

Electric drivetrain or electric-version:

Tata is also believed to be making an electric version of the Nano, called the
E-Nano (reportedly with attached or sideby solar panels as well) which
might well turn out to be the "world's cheapest electric car" which is more
eco-friendly and has many enthusiasts and media for its support. It's
supposed to be as cheap as the conventional gasoline version. Tata is
making the Nano compliant with export market regulation and plans to
export such a car worldwide, particularly to the UK and the rest of
continental Europe, the US, and Australia
Economic Times reported that the "electric Nano" "would still make good
sense for economic, clean and green personal mobility in countries
around the world." According to the Hamburg-based newspaper, Auto
Bild, the E-Nano would be built in cooperation with the Norwegian
electric car specialist, Miljøbil Grenland AS

Enthusiastic support:

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Tata Motors received preliminary enthusiastic-support in the media as well as
in government circles (including Europe and other states) for the
electric-variant of Nano. The enthusiasm is reportedly even higher than
that for the petrol-variant.
The Hindu quoted European Commission’s Director General for Energy and
Transport,
Matthias Ruete, as saying:
“ I can say that alike other nations, entire Europe is also eagerly awaiting the
commercial launch of Nano. But keeping in mind the adverse impact of
carbon dioxide (CO2) on environment, it would be advisable to have
Nano’s electric version. I hope Tata (Ratan) is working on it”.

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The ONE lakh that car drives

ONE billion dreams…

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PRODUCT FEATURES:

Length :- 3.1 mtr

Wide :- 1.5 mtr
Hight :- 1.6 mtr
Weight :- 600kg
Mileage :- 20 kmpl
Fuel Tank :- 15 ltr
Engine :- 624 cc
Top Speed :- 95-100 kph
Ground Clearance :- 180 mm
Gear Box :- 4-speed

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Structure of Tata nano as per technical aspect

TATA’s Wonder car NANO was designed at Italy’s Institute of Development in

Automotive Engineering and has Follwing Specification
THe Team behind NANO
Design Team
Siva S Aittili and Nikhil A Jadhav

Some NANO team Members

Santosh Bannur, Umesh Abhyankar, Abhay Dandekar, Sanjay Patil, C Awate,
V Katkar, Swapnil Gosavi, Girish Wagh, Mangesh Nimbalkar.
Kedar Joshi, Sundar Palani, Abhay Dandekar, Umesh Nalawade , Nikhil
Butala , Rahul Dangi, Vivek Lakhera, Rajesh A T

Rear mounted engine

The use of a rear mounted engine to help maximize interior space makes the
Nano similar to the original Fiat 500, another technically innovative “people’s
car”. A concept vehicle similar in styling to the Nano, also with rear engined
layout was proposed by the UK Rover Group in the 1990s to succeed the
original Mini but was not put into production.The eventual new Mini was much
larger and technically conservative. The independent, and now-defunct, MG
Rover Group later based their Rover CityRover on the Tata Indica.
Tata is also reported to be contemplating offering a compressed air engine as
an option

Technical specifications

According to Tata Group’s Chairman Ratan Tata, the Nano is a 33 PS (33

hp/24 kW) car with a 623 cc rear engine and rear wheel drive, and has a fuel
economy of 4.55 L/100 km (21.97 km/L, 51.7 mpg (US), 62 mpg (UK)) under
city road conditions, and 3.85 L/100 km on highways (25.97 km/L, 61.1 mpg
(US), 73.3 mpg (UK)). It is the first time a two-cylinder non-opposed petrol

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engine will be used in a car with a single balancer shaft.Tata Motors has
reportedly filed 34 patents related to the innovations in the design of Nano,
with powertrain accounting for over half of them. The head of Tata Motors’
Engineering Research Centre, Girish Wagh has been credited with being one
of the brains behind Nano’s design.

According to Tata, the Nano complies with Bharat Stage-III and Euro-IV
emission standards. Ratan Tata also said, ‘The car has passed the full-frontal
crash and the side impact crash’.

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NANO FAST FACTS:

- Designed with a family in mind, the Nano has a roomy passenger

compartment with generous leg space and head room.

- Can comfortably seat four persons. Four doors with high seating position
make ingress and egress easy.

- With a length of 3.1 metres, width of 1.5 metres and height of 1.6 metres,
with adequate ground clearance, it can effortlessly manoeuvre on busy roads
in cities as well as in rural areas.

- Its mono-volume design, with wheels at the corners and the powertrain at
the rear, enables it to uniquely combine both space and manoeuvrability,
which will set a new benchmark among small cars.

- The Nano has a rear-wheel drive, all-aluminium, two-cylinder, 623 cc, 33 PS,
multi point fuel injection petrol engine. This is the first time that a two-cylinder
gasoline engine is being used in a car with single balancer shaft.

- The lean design strategy has helped minimise weight, which helps maximise
performance per unit of energy consumed and delivers high fuel efficiency.

- Performance is controlled by a specially designed electronic engine

management system.

- The Nano’s safety performance exceeds current regulatory requirements.

With an all sheet-metal body, it has a strong passenger compartment, with
safety features such as crumple zones, intrusion-resistant doors, seat belts,
strong seats and anchorages, and the rear tailgate glass bonded to the body.

- Tubeless tyres further enhance safety.

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- The Nano’s tailpipe emission performance exceeds regulatory requirements.
In terms of overall pollutants, it has a lower pollution level than two-wheelers
being manufactured in India today.

- The high fuel efficiency also ensures that the car has low carbon dioxide
emissions, thereby providing the twin benefits of an affordable transportation
solution with a low carbon footprint.

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Tata nano and the birth of a middle class

Cambridge, MA–It’s been a pretty stellar decade so far in the world’s largest
democracy. The economy is growing at nearly 9% a year, GDP per capita has
nearly doubled, and its largest multinationals are on a global feeding frenzy,
gobbling up anything they can get their rupees on.

From steel makers and aluminum manufacturers to fabled liquor empires and
Britain’s beloved Tetley Tea, corporate India is expanding aggressively in its
quest to unseat Japan and China, Asia’s two incumbent economic powers.
Perhaps not surprisingly, capitalism suits the former British colony well — at
least in the aggregate — and with the birth of the world’s cheapest car and a
play for Ford’s premium European business, Tata looks set to usher in a new
era of Indian industrial leadership.

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It isn’t just that the Nano will cost a symbolic 1 lakh (US$2500) , or that its 33
horsepower engine will reach speeds of 65 miles an hour, or that
transportation in India will be revolutionized in ways that inventors of the
Segway only dreamed. More important than the car itself is its underlying
raison d’etre: the emergence of India’s swelling middle class, set to grow from
50 million today to nearly 600 million by 2025. Following similar demographic
and economic trends in China, these first-generation middle class consumers
will fuel the next cycle of global economic growth for automobiles, electronics,
mass media, food, and pretty much everything else we’ve come to take for
granted over the last fifty years.

The story isn’t all roses, but the challenges of sustainable and responsible
economic development are slowly being addressed. Technological advances
in agriculture, structural advances in micro-finance and micro-capitalism,
infrastructural developments within and between major urban centres, and
demographic trends will continue to fuel investment and innovation across the
continent.

That said, for those of us living in the peaceful economic bosom of the G8,
India’s latest foray into industrial design and manufacturing could spell the
beginning of the end of heavy industry in Western markets, and fuel the push
to reinvent the economies of the developed world. Traditionally, systemic
shifts of this magnitude involved sizeable labour migrations and ultimately
some measure of political instability.

One can only hope that Canadian policymakers — particularly in auto-

dependent Ontario — are students of economic history and move to educate
and innovate away from their 20th century manufacturing addictions before
the knowledge-based industries of the future are too far out of reach.

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What went wrong in five p’s of marketing of tata nano:

Product
Model:-

Tata nano was initially positioned as the lowest price car in india but the case
is not so the top model of tatanano would cost almost equal to the lowest
model of alto.
So why would people prefer to buynano which is under so much controversy
The car has achieved its low price by minimizing costs on unnecessary
“luxuries”, the basic Nano comes without front and rear fog lights, without a
heater or air conditioning, without anti-lock brakes, only one single windscreen
wiper, manually operated windows, manual steering with no air bags, tiny 12”
wheels, plastic body parts joined with adhesive instead of more conventional
metal and welding and a two cylinder 623 cc engine that provides a massive
maximum speed of 65 mph (around 105 km/h).
But when would be available from alto in almost same range that people
would definitely not purchase nanoperse
Among the features of the car are:
Fuel-efficient engine
The People’s Car has a rear-wheel drive, all aluminium, two-cylinder, 523 cc,
33 PS, multi point fuel injection petrol engine. This is the first time that a two-
cylinder gasoline engine is being used in a car with a single balancer shaft.
The lean design strategy has helped minimise weight, which helps maximise
performance per unit of energy consumed and delivers high fuel efficiency.
Performance is controlled by a specially designed electronic engine
management system.
All these thing has drastically reduced the weight but the quality has also
been compromised so it is loosing faith in the minds of people after the smoke
and fire problem which arised due to dust going into exhaust of gasoline.

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Meets all safety requirements
The People’s Car’s safety performance exceeds current regulatory
requirements. With an all sheet-metal body, it has a strong passenger
compartment, with safety features such a s crumple zones, intrusion-resistant
doors, seats belts, strong seats and anchorages, and the rear tailgate glass
bonded to the body. Tubeless tyres further enhance safety.
All safety features are available in other cars but since nano has done to
reduce the weight it has to do something more so that the light vehicle is not
so prone to fire and tatanano failed to do so.
Environment-friendly
The People’s Car’s tailpipe emission performance exceeds regulatory
requirements. In terms of overall pollutants, it has a lower pollution level than
two-wheelers being manufactured in Malaysia today. The high efficiency also
ensures that the car has low carbon dioxide emissions, thereby providing the
twin benefits of an affordable transportation solution with a low carbon
footprint.
All these had lead to environmental friendly car but the fire problem is raising
questions in the minds of people that how friendly istatanano actually.

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Pricing
Tata nano had marketed itself as to produce the cheapest car till now in india
but the lowest model of tatanano is cheapest but as we go higher to upper
model their cost is similar to alto car. Alto has more features and no
controversy as nano has. So people would definitely prefer alto over nano
There aws time when sales of nano had rised but that was due to some car
lovers who already had cars and want to try nano too
But those people for whom tatanano is already targeted would definitely like
to buy good by giving some more amount so they come to conclusion as to
why not buy alto with same price.
So even pricing of nano is not proper to reach the targeted audience

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Promotion :-
Promotion: Tata motors promote their products via Advetising and after sales
services.
Enough use of one of the most important element of promotion mix, publicity
reduces the necessity of other promotional devices for nano.
Publicity as “One lakh car” by mouth to mouth.
Auto expo 2008,New Delhi & Geneva
Publicity through print & electronic media
Singur violation.
For other type of promotional activities, cost factor that is 1 lakh price tag is to
be keep in mind, TATA is going to launch its nano mobile for indicom user,
nano watches, nano T-shirts available in Westside stores. Advertising: - TV &
other mass media will be less effective, thus too much money will not be
invested in this regard. Mainly word of mouth advertising will get more
emphasis. Internet will be a major media for advertising.
Online buzz:-Nano has gone beyond the traditional methods of advertising
and promotion online.
Official Orkut community Members - 6,906.
Official Facebook Group Fans - 4,210
Highest View Count on You Tube- 303,006 (it was just under 3,00,000 when I
began writing this post)
No. of Blog Posts - 61,664
TATA have a blog on the official website where they have been discussing
quite interesting topics and generally maintaining an active community.

In all above promotional strategies it is very clear that tata has some where
failedcto restrict its focus on the targeted people that is middle class people.
Generally midlle class people do not access net to such extent that to age
group of above 30, so the vigorous online promotion has nothing to do with
middle class segment.

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Objective for promotion strategies was also to create brand awareness and
concept/knowledge of this new car – Tata Nano. This is the cheapest car
After that, our second objective is knowledge and persuasive.the aim to
create liking, preference, conviction, and purchase of a Tata Nano car
Promotion Tag line
‘Have Fun, Pay Less, get more with Tata Nano’
People wanted to purchase nano and get more but they thought they actually
get less by paying more because of price competition from alto.
Online Advertisement
First step we start before lunching Tata Nano, do the online
advertisement. Tata Nano created a Web site – www.tatanano.com – on
March 2009 to better communicate with the customers. In the Web site, was
posted the photo categories and videos to provide customers the information
and special features of Tata Nano and bring them inside the company. In
addition to photos and videos, the web site links to recent news about Tata
Nano and space for public feedback.
Besides that, Blogs have become an important outlet for word of mouth which
are regularly updated online diaries. Blogs is bringing together people with
common interests. They vary wide and can influence a vast audience due to
many internet users have read Blogs. We can establish the blog network and
carefully monitoring to find out what's on people's minds especially the
potential customers. This is a cheapest and good way to build up brand
awareness.
Television Advertisement
Television advertisement is very expensive but this is the most
powerful to perform the Tata Nano to the public by demonstrating Tata Nano
attributes and persuasively explaining their corresponding consumer benefits.
To reduce the cost they have decided to remain away from tv ads but now
they have recently started.

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Place:
Tata Motors has an extensive dealer network covering Indian and
International markets. Wherever you are, there is a Tata Motors Sales and
Service dealership close to you. The channel of distribution, physical location,
and dealership method of distribution and sales is generally adopted. The
distribution of vehicle must be in a very systematic way, from the plant to
dealership and to end user. This is not only in India itself but also to the world-
wide dealership.
But the problem was that
The people of middle class who have never visited big showrooms are now
facing trouble to go to showrooms and talk to suited booted personnel of the
showrooms and this is also one of the major reasons of fall in demand.
Because people do not know as to how to respond to them or what to ask
them.

- 35 -
People:
Tata Motors owe success to the highly motivated and talented staff. Our
recruitment division picks the crème-de-la-crème from premier universities,
management and engineering institutes in India. They put them through
rigorous training programmes to hone their entrepreneurial skills and impart
comprehensive product knowledge.
But people were really shy to talk to these people because the middle class
families were never being exposed to such people and show room so they felt
shy to talk and approach them.

- 36 -
WHAT SHOULD TATA DO, WITH RESPECT TO FIVE
P'S OF MARKETING TO SET THE SYSTEM /TATA
NANO IN THE RIGHT TRACK.

Product:-
• Tata nano should reduce its price of top model that will lead to increase
the sales
• More awareness to people about safety terms of nano would be helpful
• The problem of smoke and fire can be solved by giving certificate of
safety from good institute so that people would feel free to buy

• The problem of fire and smoke is a technical problem and Tata very
well knows that the people from technical background would easily
solve the matter so recruiting such IT graduates who are very fast at
responding to the situation can really help to get out of the matter
faster.

- 37 -
Price:-
• Since the price of alto is almost equal to the top model of tatanano so
people are reluctant to purchase nano at that rate so reducing the price
and providing the price as promised before would help increase the
sale.

• The problem of proper funding to the middle class people can be

solved by making alliance with the financial institutes or establishing a
symbiotic relation with them as to they fund people at low rates and
Tata would in return recruit the graduates from that institutes like that
from ICAI.

- 38 -
Promotion:-
• To make Nano reach the targeted people it is necessary that people
become aware that the car is for their benefit. For that Tata would have
to reach to such people. The advertising through the print media is not
sufficient for that. So Tata should recruit people who are ready to go to
markets and make this type of people aware of what actually Nano is
all about, how it will benefit them. Going to malls and such places
where middle class people generally prefer to go and marketing the
product there will bring greater impact on the minds of the people and
so Tata should recruit MBA graduates from marketing background who
would be ready to do such marketing for them

• Marketing should be properly done as Tata is some lacking at the STP

that is Segmenting, Targeting and Positioning of the market. It is very
clear that Tata has not reached the targeted audience so Tata is failing
at proper segmenting and targeting of the people and the market. To
carry this Tata needs a good number of people from management
institutes who would study the market and then carry the STP further.
So people from management institutes or those who are good
experience holder of the Indian market for automobiles would help to
solve the situation.

- 39 -
Place:-
• The people are shy to go to showrooms and talk to them so instead of
people going to showrooms it can be done that we approach people at
their houses and their offices and their explain them about the product
and by . By doing so they will feel free to approach the showroom and
carry the matter forward. Then they can be asked to take the test drive
by coming to the showrooms. Of course by reducing the size of
showrooms the matter will prove to be good. To do all this Tata should
recruit people who are very fluent in the regional language and are not
hesitant to approach people and talk to them. The manager should be
cogent enough to make people feel that the product is for them and the
car is of much important to them. And it would be a good investment for
them. All this can be done by recruiting smart people from tier two b-
schools who are ready to go and market Nano. Tier two graduates are
needed because graduates from tier 1 b-school, will cost high for this
work

- 40 -
People:-
• To do all this Tata should recruit people who are very fluent in the
regional language and are not hesitant to approach people and talk to
them. The manager should be cogent enough to make people feel that
the product is for them and the car is of much important to them. And it
would be a good investment for them. All this can be done by recruiting
smart people from tier two b-schools who are ready to go and market
Nano. Tier two graduates are needed because graduates from tier 1 b-
school, will cost high for this work

- 41 -
Act as a catalyst of technology innovation In the mixture of
business innovation

Advance fuel
Through competition Compressed injection Eletrical engine
of more fuel efficient air engine system cars in pipeline
engine with upgraded
technology like:

- 42 -
 INTRODUCTION OF TATA GROUP

The story of Tata group of business unfolds with the birth of its founder

Jamshed ji Tata in the small town of Navasari in Gujarat in 1839. He breathed

his last in 1904 in Germany. His parents were Nuseerwan ji and Jeevanbai

Tata. Nuseerwan ji was the first businessman in a family of parsi Zorastrian

priests. Destiny called him to Bmbay where he started trading. Jamshed ji

joined him at the tender age of fourteen. He took admission in Elphinstone

college and while still a student he married Hirabai Daboo. Jamshed ji

graduated in 1858 and joined his father trading firm. Those were turbulent

times. The British had just managed to ruthlessly crush the 1857 Revolt.

Since the age of twenty-nine Jamshed ji continued to work in his father’s firm.

In 1868 he started a trading company on his own with a capital of Rs.21,000/-

his first step was to acquire a bankrupt oil mill and convert it into a cotton mill

which he renamed Alexander Mill. Two years later he sold it with a good

margin of profit. With this he set up a cotton mill in Nagpur in 1874. queen

Victoria had just been declared the Empress and in keeping with the times

Jamshed ji named it Empress mill. Jamshed ji was a unique personality. It

was not just his own personal success but also of those who worked for him

and his group. Jamshed ji was in close contact with revolutionary thinkers and

nationalists like Dadabhai Naoroji and Pherozeshah Mehta and strongly

influenced by them. He came to the conclusion that economic self-sufficiency

should go hand with political independence. The former should be the base of

- 43 -
the latter. Jamshed ji had three key ideas in mind. He wanted to set up an iron

and steel company, world class learning institution and a hydroelectric plant.

Unfortunately during his time none bore fruit but he had planted the seed,

which later took roots and spread its branches under the care of his

successors. The only achievement that he lived to see was the taj mahal hotel

.it was completed in December 1903 for a princely amount of Rs.4,

21,00,000/- in this too he was inspired by nationalist thinking. In those days

the locals, that is Indians, were not allowed into the best European hotel . taj

mahal hotel was a befitting reply to this discrimination. Tata group is a private

conglomerate with headquarters at Mumbai. The present chairman is Ratan

Tata who took over from J.R.D. Tata in 1991. A member of the Tata family is

always the chairman of the group. Its operations covers many fields related to

industry and allied activities concerned with know-how and its application

engineering, information technology, communications, materials, automotive,

chemicals energy, telecommunications, software, hotels, steel and consumer

goods. The statistics and figures of Tata group speak for themselves.

Its revenue touches $967,229 million or $ 21.9 billion in 2005/06. This is equal

to 2.8% of India’s GDP. There are about 246.000 employees in the tat group

as per records of 2004. Market capitalization figure is $57.6 billion. There are

ninety-six companies operating in seven business sectors. A only twenty-eight

of the ninety-six in Tata group are publicly listed. Tata operates in more than

forty countries across six continents. It exports products and services to one

hundred and forty nations. The charitable trust of Tata of holds 65.8% of the

ownership of Tata group TISCO now called Tata steel set up in 1907 India’s

- 44 -
first iron and steel plant in Jamshedpur, whish is often called Tatanagar.

Production actually started in 1912. It produce steel at the lowest cost in the

word. This is mainly because it is assisted by group member concern that

deals with the supply of raw material like coal and iron. In 1910 was set up

Tata Hydro-Electric power Supply Company. In 1917 the Tata group made its

debut in the field of consumer goods industry with the setting up of Tata oil

mill dealing in soaps, detergents and cooking oil. 1932 saw the establishment

of Tata airlines. Tata chemicals made its appearance I 1939. Telco now

known as Tata Motors started to manufacture locomotive and engineering

products from 1945. January 2007 is a watershed in the history of Tata group.

Tata steel made a successfyl bid for UK based corus group, which was one of

the world’s leading steel and aluminum producers. After an unprecedented

nine rounds of bidding Tata finally clinched the deal.

Tata offered to buy 100% stake in Corus at 608p per share (all cash) totaling

to a value of $12.04 billlion. It has turned out to be the biggest acquisition by

any Indian Company. Tata Power is one of the largest private sector

companies in India and supplies power to Mumbai and parts of New Delhi.

Then there are Tata Chemicals and Tata Pigments. In the service sector there

are Tata Companies dealing with hotels, general insurance and life insurance.

Tata offers management, economic and financial consultancy services. Tata

offers management, economic and finanacial consultancy services. Tata is

one of the best names in the world of investments and shares. In the area of

education Tata’s publishing house of Tata McGraw Hill is a renowned name.

Many renowned public sector companies and research organizations like

- 45 -
Indian Institute of Science, Tata Institute of Fundamental Research, Tata

Institute of Social Sciences, Tata Energy Research Institute and Air India

(Tata Airlines) owe their origins to the name of Tata. Other educational

institutes are Tata Institute of Science now Indian Institute of Science,

Bangalore. Tata Institute of Fundamental Research “Deemed University, Tata

Management Training center, Pune, Tata Institute of Social Science” deemed

University and National Centre for the Performing Arts. The name of Tata is

linked to consumer durables like tea, watches (Titan) Tata Trent (Westside) to

Tata skyand even gold and diamonds like Tanishq brand of jewellery. In

Information systems and communications the Tata name comes with

Computational & Research Laboratories, INCAT, Nelco, Nelito Systems, TCS

and Tata Elxsi.

There are software companies Tata Interactive Systems, Tata Infotech, Tata

Technologies Ltd, Tata Teleservices, Tatanet etc. Tata acquired VSNL, the

Indian telecom giant from Bermuda bassed Canadian company named

Teleglobe in 2005. The aim of Tata Group to improve the quality of life in the

society by virtue of integrity, understanding, excellence, unity and

responsibility. The entire family known as the Tata Group shares these

values. Tata’s contribution to India’s education, science and technology has

been widely documented and respected. The blue colored log of Tata speaks

for fluidity as well as fountain of knowledge. In can also be seen as a tree

under which all are welcome to take refuge.

- 46 -
 INDUSTRY PROFILE

An embryonic automotive Industry emerged in India in the 1940 following the

independence in 1953 the government of India and the private sector

launched efforts to create an automotive component manufacturing industry to

supply to the automobile industry. However the growth was relatively slow in

the 1950s to 1960s due to nationalization and the license raj which hampered

- 47 -
the Indian private sector. After 1970 the automotive industry started to grow

but the growth was mainly driven by tractors, commercial vehicles and

scooters, cars were still a major lixury Japanese manufacturer’s enterd the

Indian market ultimately leading to the stablishment of maruti udyog. A

number of foreign firms initiated joint venture with Indian companies.

In 1980s a number of Japanese manufacturers launched joint venture for

building motorcycles and light commercial vehicles automobile company like

TATA MOTORS, Mahindra and Mahindra, Ashok Leyland, Swaraj Mazda and

Eicher are manufacturing high performance delivering LCVs. The LCVs

produced by these companies are not only sold in India but are also exported

to various foreign markets as well.

The last few years huga amount of investment have been made in automobile

industry. With more global players getting interested in Indian automobile

Industry, these investments are supposed to increase even more in the near

future. Most of LCV manufacturers in the country are emphasizing on better

research and development activities and efforts are being given to provide

efficient after sales services to customers.

Some of the popular offerings in the field of light commercial vehicle from the

TATA MOTORS stable are 407 and 709 of which the former has made a

distinct mark in the category of Indian LCVs. However the recently Tata Ace

has brought about dramatic change in the Indian LCV market. Low priced and

- 48 -
attractively designed. The Tata Ace has been hugely popular and recorded

significant sales in the first year of production itself.

Ashok Leyland is another major player with product like cargo 759 tipper to

boast of with a wheel base of 3200 mm and 5 speed synchromesh gearbox; it

has got 4 cylinder diesel power engines.

- 49 -
 COMPANY PROFILE

The TATA Group comprises 98 operating companies in seven business

sector: Information systems and communication, Engineering, Materials,

Services. Energy Consumer Products and Chemicals. The Group was

founded by Jamsed Ji Tata in the mid 19th century, a period when India had

just set out on the road to gaining independence from British rule.

Consequently Jamsed Ji Tata and those who followed him aligned business

opportunities with the objective of nation building. This approach remains

enshrined in the Group’s ethos to this day. The TATA Group is one of the

India’s largest and most respected business conglomerate, with revenues in

2006-07 of $ 28.8 billion (Rs. 129,994 crore) the equivalent of $ 60.56 billion

as on April 3, 2008. TATA Companies together employ some 289,500 People.

The group’s 27 publicly listed enterprises among them stand out names such

as TATA steel, TATA Consultancy Services, TATA Motors and TATA Tea

have a combined market capitalization that is the highest among Indian

business houses in the private sector, and a shareholder base of over 2.9

million.

The TATA Group has operations in more than 80 Countries, six continents

and its companies export products and services to 85 countries. The TATA

Family of companies shares a set of Five Core Values: Integrity,

Understanding, Excellence, Unity and Responsibility.

- 50 -
These values which have been part of the Group’s belief and conviction from

its earliest days, continue to guide and drive the business decisions of TATA

Companies.

The Group and its enterprises have been steadfast and distinctive in their

adherence to business ethics and their commitment to corporate social

responsibility. This is a legacy that has earned the Group the trust of many

millions of shareholders in a measure few business houses anywhere in the

world can match.

- 51 -
 ORGANISATION STRUCTURE

November 28, 2009

Tata Steel- Organization Structure of Tata Steel Group “ The CFO is the

conscience-keeper of the Organization” said Tata Steel Group CFO

Kaushik Chatterjee as he spoke at the 2nd CFO Strategies India 2009 on

Monday, 15th September in Mumbai as he delivered insights on the

remarkable rise of Tata Steel and its much-publicised acquisition of

Corus last year. Sourya Biswas reports from the venue.

When companies announce their annual reports or bask in the glow of

successful deals, it is often the CEOs who take centre stage. However, a lot

of the groundwork for a successful venture is

done by another important functionary in the corporate machinery, the chief

financial officer who goes by the humbler acronym of CFO. With rapid

economic growth and increased globalization over the last decade the

importance of the finance professional has grown manifold and for the top

finance professional in an organization, the CFO, the changing dynamics of

international business have caused him to adopt and adapt at a frenetic pace.

All these and many other details were discussed at the closed-door two day

CFO Strategies India 2009 Summit, organized by Dubai-based Naseba at the

Hotel Le Meridien in Mumbai on 15 and 16 September 2009.

- 52 -
Although an ideal township where nature is in perfect harmony with steel

manufacturing, it was admittedly, a small operation with only 4 million tonnes

annual capacity. Also, even though Tata Steel had a lea`ership position in

finished goods like automobiles and white goods, in many other details were

adopt and adapt at a frenetic pace. All these and many other details were

discussed at the closed-door- two-day CFO Strategies India 2009 summit,

organized by Dubai-based Naseba at the Hotel Le Meridien in Mumbai on 15

and 16 September 2009.

On the first day Kaushik Chatterjee group CFO, Tata Steel, treated the

delegates to an enlightening session. In his 30-minute presentation “M&A-

growth strategy for value creation”, Chatterjee spoke in detail on the growth of

the Tata Group in general and Tata Steel in particular, all on the strength of

mergers and acquisitions. Of particular interest were his views on the Corus

acquisition of 2007 that had occupied the pages of pink sheets worldwide.

Chatterjee candidly admitted that the earlier growth of the Tata Group had

been largely organic as previous political regimes had not been very

conducive to growth by acquisition, either domestic or international. He called

the 10 years from 1992 onwards as the “decade of transformation.”

Elaborating on the Arthur D Little recommendations for the group in the early

90s, Chatterjee said that the consultancy had been quite vocal on the group’s

needs to be internationally competitive, something quite alien to the house of

Tata then. However the sleep growth curve that had started in 2000 with Tata

Tea’s acquisition of Tetley grew even steeper and faster with one acquisition

after another by different group companies, topping off with the $12.11-billion

- 53 -
takeover of Corus last year. The meteoric growth strategy for Tata Steel in

particular and how it grew to become the sixth-largest steel producer in the

world. Of course, he didn’t forget to mention that his company continues to be

the “Lowest-cost steel producer in the world” as well. As of 2003 Tata Steel

was essentially a one-site company centred in the pristine locales of

Jamshedpur-aptly named after the great man who envisioned the place, Shri

Jamshed Ji Nusserwan ji Tata.

Although an ideal township where nature is in perfect harmony with steel

manufacturing it was admittedly, a small operation with only 4 million tones

annual capacity. Also even though Tata Steel had a leadership position in

finished goods like automobiles and white goods in many other aspects it

lagged behind its competitors. More importantly as regards a foreign presence

there was none Chatterjee spoke of how the senior management got together

at this point of time to envision an aspirational target for the company as well

as brainstorm on how to achieve it. From these high-level discussions

emerged a target-15 million tones annual capacity by 2015 subsequently

revised to 50 million tones – a ten-foldplus increase in just ten-plus years. Of

course the company’s jewel in the crown Jamshedpur was to be very much a

part of the action. Target capacity was set at 10 million tones by 2010 with

gradual increments over the years: 4 to 5 million tones in 2005 (already

achieved) 5 to 6.8 million tones in 2008 (on schedule) and 6.8 to 10 million

tones in 2010 (expected).

Reason behind these ambitious numbers

- 54 -
Chatterjee explained that such an ambitious target wa born out of the

management’s confidence in a vibrant world economy with special emphasis

on engines of growth like India, China, Russia, South-East Asia and Brazil.

Indeed many of the company’s recent investments bear ample

BOARD OF DIRECTORS

(As on 14th April, 2009.)

Mr R N Tata (Chairman)
Mr James Leng (Non-Executive Deputy Chairman)
Mr Nusli N
Wadia
(Company Director)
Mr S M Palia (Company Director)
Mr Suresh
Krishna
(Financial Institutions’ Nominee)
Mr Ishaat
Hussain
(Board Member)
Dr Jamshed Ji
Irani
(Board Member)
Mr Subodh
Bhargava
(Board Member)
Mr Jacques
Schraven
(Non-Executive Independent Director)

- 55 -
Dr Anthony Hayward (Non-Executive Independent Director)
Mr Philippe Varin (Non-Executive Non Independent Director)
Mr B Muthuraman (Managing Director)
Dr T Mukherjee (Non Executive Director)
Mr Andrew Robb (None Executive Independent Director)
MANAGEMENT ( As on 14th April, 2009)
Mr B Muthuraman ( Managing Director)
Mr H M Nerurkar Chief Operating Officer
Mr A D Baijal Vice President & Tata Steel

- 56 -
 HISTORY OF TATA MOTORS

Brief History, Vision and Mission

1868

Jamesht ji Nusserwa ji Tata stars a private trading firm laying the foundation
of the Tata group.

1874

The central India spinning, weaving and Manufacturing Company in set up,
making the Group sentry into textiles.
1902

The Indian hotels company is incorporated to set up the TAJ MAHAL palace
ad Tower India’s first luxury hotel which opened 1903.

1907

The Tata iron steel company is established to set up India’s first iron and steel
plant in Jamshedpur, which started production in.

- 57 -
1910

The first of the three Tata electronic companies, the Tata Hydro-electronic
power supply company, is set up to generate electricity.

1911

The Indian institute of science is established in Bangalore to serve as a centre

for advanced learning.
1912

Tata steel introduces eight-hour eorking days, well before such a system was
implemented by law even in most western countries.
1917

The Tata enter the consumer goods segment as the Tata oil mills company is
established to make sosps, detergents ad cooking oils.
1932

Tata Airlines, a division of Tata sons, is established, opening upthe aviation

sector in India.

1939

Tata Chemicals is established.

1945

Tata Engineering and Locomotive company (renamed Tata motors in 2003) is

established to manufacture locomotive and engineering products. The
company began manufacturing commercial vehicles in 1954 in a JV with
Daimler Benz.

- 58 -
1952

Pandit Jawharlal Nehru, India’s first Prime Minister, requests the group to
manufacture cosmetics in India, and Lakme is established.

1968

Tata consultancy service (TCS), India’s first software services company, is

established as a division of Tata sons.
1984

Titan industries- a joint venture between tha Tata group and the Tamil Nadu
industrial development corporation (TIDCO) - is set up to manufacture
watches.
1995

Tata quality management services institutes the JRD QV award, modeled on

the Malcolm baldrige national quality value award of the united states, laying
the foundation of the tata business excellence model.
1996

Tata teleservices limited (TTSL) is established to spearhead the group’s foray

into the telecom sector.

- 59 -
1998

Tata Indica- India’s first indigenously designed, developed and manufactured

car- is launched by Tata motors, spearheading the group’s entry into
passenger cars.

2000

Tata Tea acquires the Tetley group, UK, in the first major acquisition of an
international brand by an Indian group.
2001

Tata-AIG – a joint venture between the Tata group and American international
group Inc (AIG) – marks the group’s re-entry into insurance. The group’s
insurance company, new India assurance, was nationalized in 1956.
2002

The Tata group acquires a controlling stake in Videsh sanchar nigam limited –
India’s leading international Telecommunication service provider.
• Tata consultancy services becomes the first Indian software company
to cross one billion dollars in revenues.
• Titan launches Edge, the slimmest watch in the world.

2004

Tata motors acquires the heavy vehicles uint of Daewoo motors, South
Korea.
• Tata steel makes its first major overseas investment in Nat Steel Asia,
headquartered in Singapore.
• Tata consulting service goes public in India’s private sector’s largest
initial public offer.

- 60 -
2005

Indian hotels adds New York’s iconic hotel, the Pierre, to its portfolio as also
its Ginger “Smart Basics” hotels in India.
• VSNL acquires Tyco Global network, making it one of the world’s
largest provider of submarine cable bandwidth.

2007

In a major in its unfolding strategy of growth and globalization, Tata Steel

acquires corus, the UK- based steel company, for $ 12.1 bn, the biggest
overseas acquisition by an Indian company. Tata steel is now the world’s 6 th
largest steel producer with capacity of 26 million tones per annum and
operations in 24 countries.

2008

Tata Motors unveils Tata Nano, the people’s car, at the 9th auto expo in Delhi.

- 61 -
 Vision and Mission
The Tata Group is one of India largest business conglomerates established by

Jamshed ji Tata (Jamshed Ji) In the second half of the 19th century. Jamshed

ji’s vision for the Group was in line with nationalist goals and Ideals then and

envisaged to make India self-reliant. After Jamshed Ji, Jehangir Ratan Ji

Dadabhoy Tata (JRD) became the Chairman of the Tata Group and played a

significant role in continuing the vision of the group. Tata assets climbed from

INR 620 million in 1939 to INR 100 billion in 1990. Tata Motors had increased

its sales to INR 1 million in the Year 1991 and it had rolled out 3 million

vehicles in the same year. In 1991 Ratan Naval Tata (Ratan Tata/Ratan) took

over the Chairmanship from JRD Tata. Although he was initially criticized for

his poor performance over the years, Ratan Tata disproved his critics. He

restructured Tata Group’s business operations and made the Group compete

globally. Under Ratan Tata’s chairmanship, Tata Consultancy Services went

public and Tata Motors was listed in the New York Stock Exchange. Starting

from the late 1990s, Ratan revamped the operations of Tata Steel and made it

one of the lowest-cost steel producers in the world. However, as the Tata’s

lacks an heir who can succeed Ratan, the group is at cross-roads to decide

who will be the next chairman. After Ratan Tata’s retirement who would

succeed him an carry the vision of the Group is a dilemma.

- 62 -
 MISSION
Our Mission in Tata is to improve the quality of life in India through leadership

in targeted sectors of national economic significance to which the Group can

bring a unique set of capabilities.

- 63 -
 Core business when started / established
Development of Tata Iron & Steel Company: (Late 1800s-1980s)

From the mid-1880s, Tata commissioned a series of surveys in India’s coal

producing areas, such as Bihar and Orissa in the northeast of the

subcontinent, to locate iron ore within easy reach of coal deposits and water,

both essential elements in steel production. He visited the United States to

seek the advice of the world’s foremost metallurgical consultant, Julian

Kennedy and went to Birmingham, Alabama to study the coking process in

action. In England in 1900 he discussed his plans with the secretary of state

of India, Lord George Hamilton. In India, the way had been opened for private

enterprise with the introduction of a more liberalized mineral concession policy

in 1899. With Julian Kennedy’s help,American specialists were brought in and

began surveying in 1903. After a series of disappointments, rich iron ore

deposits were identified in the dense jungle in Bihar at the confluence of two

rivers near Sakchi three years after Jamshed ji Tata’s death in 1904. Also

involved in the surveying was Tata’s nephew, Shapur ji Saklatvala, whose

health suffered so much that he was sent to London to recuperate.

There, he joined his uncle’s London office which had been established some

years earlier to represent the interests of the family cotton business. His

- 64 -
energies were soon channeled away from business matters and into politics

and he became Communist member of Parliament for Battersea North in

1922. Four years after Tata’s death his sons Dorab Ji and Ratan Ji began

development of the Bihar site.

The Tata Iron and steel Company by seeking out Indian Investors. In the face

of warnings that India could not afford a flotation of the size the Tata brothers

set out to raise Rs 23.2 million in shares. Within eight weeks some 8,000

Indian investors came forward and the whole share issue was taken up. The

Tata’s retained 11 percent of the stock for themselves. There were enormous

initial problems in clearing the Sakchi site and once production began in

ensuring that the coal was of a uniform quality. By 1916, however, production

was meeting expectations and during World War I the Company exported

1500 miles of steel rails to Mesopotamia. Rapid expansion to support the

Allied war effort was followed by Depression during the 1920s with escalating

prices, transport and labor difficulties and major earthquake in Japan by now

TISCO’s biggest customer. The company had to suspend its dividend for 12

out of 13 years in this period and was on the brink of closing in 1924 when Sir

Dorab Ji Tata had to pledge his personal fortune to secure the necessary

bank loans to keep the business afloat. TISCO emerged from the 1930s

however as the biggest steel plant in the British Empire.

World War II brought a resurgence in demand for Tata products and the

Company specialized in the manufacture of armored cars known as

Tatanagars, which were used extensively by the British Army in the North

African desert. Following six years of almost continuous production to serve

- 65 -
the war effort it became imperative in the late 1940s to begin replacement of

the plant. In association with Kaiser Engineering of the United States capacity

was expanded and a Modernization and Expansion Program (MEP) was

launched in 1951 upgraded four years later to the Two Million Ton Project

(TMP) to give TISCO the capacity to produce two million tons of crude steel.

This was achieved in 1958 but further expansion was put on hold during the

1960s while the country passed through a period of devaluation and

recession. By 1970, however TISCO employed 40,000 people at Jamshedpur

with a further 20,000 in the neighboring coal mines. Government attempts to

nationalize TISCO in 1971 and 1979 were defeated in part it was believed to

retain an efficient private sector yardstick against which the performance of

public sector companies could be judged. An ever-increasing range of

government legislation to bring private sector businesses into line with

national economic planning on the Soviet model, however, hampered Tata’s

freedom to develop in the postwar period. In 1978 the government restricted

TISCO’s dividend to 12 percent to force it as India’s only private sector steel

producer, to plough money into modernization. Expansion was restricted by a

government committed to helping nationalized Industry.

Further difficulties were created in the late 1970s by chronic shortages of coal

power and rail transport. An estimated Rs 45 crores of salable steel was lost

during 1979-80 because of these shortages. TISCO soldiered on, However

and in the following decade began to benefir\t from a relaxation of government

control as a more pragmatic attitude to the importance of private sector

industry emerged. In 1989 the Tata Group increased its stake in the steel firm

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to ward off any attempts by outside shareholders to gain control of the

Company. By 1990, TISCO remained India’s largest nonpublic Company

announcing a 30 percent increase in profits against a backdrop of general

depression in the Indian economy as a whole.

Promoter Companies

Tata Sons, Tata Industries, Group holding Structure

Tata sons and Tata Industries are the two promoter companies of the Tata

Group

Tata Sons

This premier promoter company of the Tatas was established as a trading

enterprise by group founder Jamsed Ji Tata in 1868. It is the promoter of all

key companies of the Tata Group and holds the bulk of shareholding in these

companies. The chairman of Tata Sons has traditionally been the chairman of

the Tata Group. Tata sons is the owner of the Tata name and the Tata

trademark which are registered in India and several other countries. About 66

percent of the equity capital of Tata Sons in held by philanthropic trusts

endowed by members of the Tata family.

Tata Industries

Tata Industries was set up Tata Sons in 1945 as a managing agency for

business it promoted. Following the abolition of the managing agency system,

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Tata Industries mandate was recast in the early 1980s to promote the Group’s

entry into new and high-tech areas.

Tata Industries has over the last two decades, initiated and promoted the

Group’s ventures into

several sectors, including control systems information technology financial

services auto components advanced materials and telecom hardware.

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 TATA MOTORS MILESTONES

It has been a long journey for Tata Motors, India’s largest auto mobile

manufacturer. Some significant millstone in the company’s journey towards

excellence and leadership.

• 1945- Tata engineering and locomotive cop. Was establish to

manufacture locomotive and other engineering product.

• Celebration with diemiler benz ag, for manufacturing of medium

commercial vehicles.

• 1959- research and development center establish at Jamshedpur.

• 1971-introduction of first di engine.

• 1987- Production of first light commercial vehicles tata 407

• 1992- launch of Tata estate.

• 1995-mercedes benz car e220 launched.

• 1998- Tata Safari Indias first sports vehicle launched.

• 2001- Indica v2 launched second generation Indica.

• 2005- Tata moters roled out 500,000 passenger car from its car plant

facility in Puna.

• 2007-construction of small car plant at singur in west Bengal Being on

Jan. 21

• -New 2007 Indica v2 is launched.

• -Launch of magic a comfortable four wheeler for public transportation.

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 • 2008- Ace plant at pant nagar being production.

• Tata motors launched nano the people car. Launch of premium luxury

• 2009- tata marcopolo motors dharbad plant begins production.

• Tata motors launched NANO the people car. Launch of premium

luxury.

Founder Jamesed ji Tata

Year of Establishment 1945

Business group The TATA group

Listing & its codes BSE- code: 500570

NSE- code: TELCO & TATA
MOTORS
NYSE- code: TTM
Corporate office Bombay House
24, homi mody street
Mumbai 400001, India
Tel: +(91)-(22)-56561676

Works Jamsedpur, Pune, Lucknow, Singur

and Dharwad

E-mail am@tatamotors.com
rbc@telco.co.in (for international
inquires)
Website www.tatamotors.com
www.tata.com/tata motors

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Compression between Tata nano and maruti 800

Specification Tata nano Maruti 800

Engine 623cc petrol parallel 796cc inline three
twin. ,petrol.
Max power 34.5bhp@52520rpm 37bhp@5000rpm

Performance 0-60kph in 8.66 secs 0-60kph:8.1secs

Top speed 105kph 130kph

Weight 600kg 665kg
Fuel capacity 15 litre 35 litre
Price(lakh) 1.34-1.85 2.36-2.86
Mileage 23.4 kpl 16.5 kpl

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- 82 -
PRICING STRATEGY :

Though the one lakh price tag is not fixed by TATA

group, it was the word of mouth of people which fixed
that range. This expectation of people creates a big
challenge for the company. To accept this challenge
the following strategies are followed:-
•Target costing method
•Penetration pricing
•Low pricing policy with minimum profit margin

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

Promotion activities….

Online buzz
:-Nano has gone beyond the traditional methods
of advertising and promotion online.
Social Media communities:-
Official Orkut community Members - 6,906.
Official Facebook Group Fans - 4,210
Highest View Count on You Tube- 303,
No. of Blog Posts - 61,664
TATA have a blog on the official website where
they have been discussing quite interesting topics
and generally maintaining an active community.

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Distribution….
•So far we know TATA, it’s business has been extended to the
overseas i.e. to the Europe, Africa, U.S & Australia.
•Hence it has n-number of showrooms in India & outside of
India.
•The exclusive showrooms are the best distribution channels
Of TATA itself

Post purchase service

•As Tata is going to provide this car with rupees one lakh only,
so it may not give the same service like it’s other vehicles.
•But it’s post purchase services will be better than a costlier
bike.
•Customers may get minimum three services from Tata in any
of it’s servicing center, all over the country.
•We the future customers, can also hope for additional services from TATA

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

3. Place: Tata Motors has an extensive dealer network covering Indian and
International markets. Wherever you are, there is a Tata Motors Sales and
Service dealership close to you. The channel of distribution, physical location,
and dealership method of distribution and sales is generally adopted. The
distribution of vehicle must be in a very systematic way, from the plant to

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dealership and to end user. This is not only in India itself but also to the world-
wide dealership.

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

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

6. Processes: Tata motors follow Balanced Scorecard Collaborative, Inc for

achieving excellence in overall Company performance.

7. Physical Evidence: The management of the company has managed to

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

- The Tatas are not too happy with the sale records of their people's car Nano
whose sales have dipped by almost 85 per cent.The people's car Tata Nano
is in trouble. The Tatas were able to sell just 509 Nanos in November, as
against the 3000 plus they sold in October. The makers of the world's
cheapest car, however say there's nothing wron

Product: Tata has a very wide range of products it has passenger cars,
utility vehicles, Trucks, Commercial passenger Carriers and Defence
Vehicles
Nano received media attention due to its targeted low price.

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 The Tata Nano is a rear-engine, fourpassenger ,city car built by Tata
Motors,
 It was first presented at the 9th annual Auto Expo on 10 January 2008,
at Pragati Maidan in New Delhi, India.
 From Singur to Pantnagar (Uttakrkhand)
 Aimed primarily at the Indian market

Price:The prices of Tata motors are generally affordable acceptable by

the general public at large. Tata always have something for the lower class
people with Nano being their trump card. Giving discount every month and
special promotion for certain type of vehicle also one of the strong strategy
use by Tata Motors. Discount can be made from

Company’s profit or from dealer’s profit at certain range.

Pricing strategies:

 Penetration pricing
 Low pricing policy with minimum profit margin.
 Though the one lakh price tag is not fixed by TATA group, it was the

word of mouth of people which fixed that range. This expectation

of people creates a big challenge for the company.

Place: Tata Motors has an extensive dealer network covering Indian and

International markets. Wherever you are, there is a Tata Motors Sales

and Service dealership close to you. The channel of distribution, physical
location, and dealership method of distribution and sales is generally
adopted. The distribution of vehicle must be in a very systematic way,
from the plant to dealership and to end user. This is not only in India itself
but also to the world-wide dealership.

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Promotion: Tata motors promote their products via Advetising and after
sales services.
 Enough use of one of the most important element of promotion mix,
publicity reduces the necessity of other promotional devices for nano.

 Publicity as “One lakh car” by mouth to mouth.

 Auto expo 2008,New Delhi & Geneva
 Publicity through print & electronic media
 Singur violation.

For other type of promotional activities, cost factor that is 1 lakh price tag is to
be
keep in mind, TATA is going to launch its nano mobile for indicom user, nano
watches, nano T-shirts available in Westside stores.

Advertising: - TV & other mass media will be less effective, thus too much
money will not be invested in this regard. Mainly word of mouth advertising
will get more emphasis.

Internet will be a major media for advertising.

 Online buzz:-Nano has gone beyond the traditional methods of
advertising
and promotion online.

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 RESEACH METHODOLOGY

Research methodology is a way to systematically solve the research

problem. It may be understood as science of studying how research is done

scientifically.

According to chifford woody,

“Research comprises defining and redefining problems formulating

hypothesis or suggested solutions collecting, organizing and evaluating data,

making dedication and reacting conclusions and at last carefully testing the

collusions to determine whether they fit the formulating hypothesis.”

The advance learner’s dictionary of current English lays down the earning of

research as,

“A careful investigation or inquiry especially through search for new fact in any

branch of knowledge.”

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 METHODOLOGY

For preparation of questionnaire the basic objective of the survey was

concentrated previous surveys under taken prospect card secondary data

through net and related books and magazines.

For the survey, convenience sampling this method involves purposive of

deliberate selection of particular units of the universe which representing

universe.

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 MEHODS OF DATA COLLECTION

Data was collected through personal interview

RASEARCH PROCESS

Research process consists of series r steps necessary to effectively carry out

research. And this has a sequence of certain steps.

Define Research Process

Review or Literature

Formulate Hypothesis

Research Design

Collect Data

Analyze Data

Interpreted Report

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 OBJECTIVE OF RESEARCH

 To gain familiarity with a phenomenon or to achieve a new insights into

it.

 To portray accurately the characteristics of a particular individual

situation or a group.

 Provide an overview of the present situation of TATA Vehicle in the

segmented market.

 Present a systematic analysis of customer’s need & want for TATA

MOTORS.

 To find out Customer satisfaction regarding TATA Vehicle.

 Collect the different opinion from different people in order to analyze

the performance of TATA Vehicle according to collected data.

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 Research Design

A research design is the arrangement of conditions for collection and

analysis of data in a manner that aims to combine relevance to the

research purpose.

 This study is about to make the communication easy between the

TATA MOTORS & TATA Vehicle users.

 The study is being made to know the level of satisfaction of TATA

Vehicle users & also the employees who are in TATA Workshop.

 Data have been collected with the help of questionnaire and Interview

with TATA Vehicle users and employees who are in TATA Motors.

 Sample design for the study is simple random probability sampling.

The period for this study is 48 days.

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 SAMPLE DESIGN

The way of selecting the sample that the researcher uses is known as

sample design. It is done before the collection of data.

There are various types of sample design but we have taken, Simple

random sampling.

This type of sampling is also known as chance sampling or probability

sampling. Where each & every item in the population has an equal chance

of inclusion in the sample. Since the target market of the product of our

research is both educated or non-educated segment of society we have

selected the person who have transport business.

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 DATA COLLECTION

The task of data collection begins after a research problem has been

defined and research design/plan is chalked out. While deciding about the

method of data collection to be used for study the researcher should keep

in mind two type of data viz.

a) Primary Data

b) Secondary Data

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 METHODS OF DATA COLLECTION

The researcher should keep in mind two types of data viz. primary and

secondary data. The primary data are those which are collected a fresh

and for the first time and thus happen to be original in character. The

secondary data on the other hand are those which already have been

collected by someone else and which have already been passed through

statistical process.

1) Collection of Primary Data:

There are several method of collection Primary Data Particularly in

surveys and descriptive researches important ones are:

i. Observation Method

ii. Interview Method

iii. Through Questionnaires

iv. Other Method which include

a) Using Mechanical Techniques

b) Through Projective Techniques

c) Depth Interview

d) Content analysis

Questionnaire: The main medium of collecting the data was questionnaire.

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Interview:

TATA vehicle users & employees of TATA MOTORS were interviewed for

the analysis purpose. Their responses along with the reasons are written

down in the analysis.

Collection of secondary data:

Secondary data means data that are already available i.e. they refer to

data which are already collected analyzed by someone else. Secondary

data may be either published data or unpublished data. Usually published

data are available in:-

1. various publication of automobile company

2. technical and trade journals

3. books, magazines and news papers

4. public record and statistics

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Literature:

Literature like material was not available but some formal data was available

which was very helpful in the analysis.

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 HYPOTHESIS

Hypothesis is a tentative assumption made is order to draw out & test its

logical or empirical consequences. It provides the focal point for research.

Hypothesis should be very specific & limited. The rote of hypothesis is to

guide the researcher by delimiting the area of research & to keep him on the

right track.

Hypothesis for this research is as follows………

 To portray accurately the characteristics of a particular individual

situation or a group.

 Provide an overview of the present situation of TATA Vehicle in the

Segmented Market.

 Present a systematic analysis of customer’s need & want for TATA

MOTORS.

 To find out Customer satisfaction regarding TATA Vehicle.

 Collect the different opinion from different people in order to analyze

the performance of TATA Vehicle according to collected data.

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 HYPOTHESIS TESTING

PRODUCT :- TATA NANO

CONTACT METHOD – DIRECT (Researcher’s directly contact with

respondents)

INQUIRY MODE – Structured (Everything that forms the research process

is predetermined)

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 SWOT ANALYSIS

SWOT Analysis is a strategic planning method used to evaluate the

Strengths, Weaknesses, Opportunities, and Threats involved in a project or in
a business venture.

It involves specifying the objective of the business venture or project and

identifying the internal and external factors that are favorable and unfavorable
to achieving that objective.

STRENGTH

• First innovation – Set of benchmark – 41 patents for innovation

• Brand Name
• Vast experience in Automobiles
• Tested successfully by for crumple zones
• Cheapest & Stylist
• Eco-friendly & Business model
• High fuel efficiency, Mileage, All whether vehicle
• Resources & Capabilities (People and Raw material)
• Variomatric gear System – Magnifies forque
• Space - Internal 21% more than Maruti 800
- External 8% less than Maruti 800

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WEAKNESS

• No Modern facility like – ABS, PS, AC etc.

• Less boot space
• No Headlight levelers
• Not fit for hilly areas
• Poor fraction control
• Poor engine cooling & hence, over heating
• Small tyres
• Window wind down by hands
• No Passenger side mirror
• Fiber body
• Low Suspension power
• Low engine capacity
• Light vehicle

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OPPORTUNITY

• World Wide Appeal

• Bikers can be motivated
• Create employeement
• Use in place of auto-rickshaw
• Second hand market can be motivated
• Diesel and Electric variance
• Developing Low price engine oil
• Royalty

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THREAT

• Reva an electronic car

• Traffic Problems
• Government can increases taxes in metro city
• Rising cost of Raw-material
• Reducing parking space
• Security not sure
• Bad impression due to late date in market
• Cost may be increase in future
• Competitors like –
Bajaj, Chery, Honda siel, General Motors, Maruti

Traffic Problems

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 QUESTIONNAIRE

Name: ……………………………………………………………..

Phone number: ……………………………………………………

Address: ……………………………………………………………

1. What is the first thing, which comes into your mind when you think
about NANO?
.................................................. .................................................. .................
.................
.................................................. .................................................. .................
.................
.................................................. .................................................. .................
.................

2. Instead of purchasing a Bike, will you prefer to go for the NANO?

1. Yes
2. No
3. Can’t say

3. Which feature of NANO attracts you most, that inspires you to go for
NANO?
1. Price
2. Design
3. Mileage
4. Interior space
5. All the above
6. Can’t say

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4. Which colour of NANO would you prefer?
1. Red
2. Blue
3. White
4. Yellow
5. Silver
6. Other, Specify…
…............
5. For what purpose would you like to use NANO?
1. Will offer it to your children to use it in place of a two wheeler.
2. Will use as family car for shopping and travel.
3. Will prefer as a taxi.
4. Would like to offer as gift.
5. Any other, specify.................................

6. Do you think NANO is people's car

1. Yes
2. No
3. Can’t say

7. Will you recommend NANO to your friends and relatives?

1. Yes
2. No
3. Can’t say

8. Which small car would you prefer to buy?

1. Maruti 800
2. Tata NANO
3. Other………………..

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9. How long can you wait for NANO?
1. 1-2 months
2. 2-4 months
3. 4-6 months
4. Can’t wait

10.If the price of NANO rises, would you still purchase it?
1. Yes
2. No
3. Can’t say

11.Will Tata be able to maintain the price of nano in future if there is hike in
cost of raw materials?
1. Yes
2. No 3. Can’t say

12.How will you feel if NANO is used as a taxi?

1. Embarrass
2. Don’t care
3. Can’t say

13.Will there be traffic problem with the introduction of nano on Indian

roads?
1. Yes
2. No
3. Can’t say

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14.Can you trust NANO for safety?
1. Yes
2. No
3. Can’t say

Thank you

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 BIBLIOGRAPHY

Our mentors provided a lot guidance but a part from this we took help from

these sources.

Books

Marketing management (Twelth Edition) by Kevin killer

Marketing management By:- PHILIP KOTLER

Research methodology By:- KOTHARI C.R

Marketing management, the McGraw. Hill company by Rajan Saxena (Third

edition)

MAGAZINE

NURTURING IDEAS- DRIVING GROWH

BUSINESS WORLD

INDIA TODAY

NEWS PAPER

FINANCIAL EXPRESS

BUSINESS STANDARD

TIMES OF INDIA

WEBSIE

WWW.GOOGLE.CO.IN

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 WEBLIOGRAPHY
www.tata.com

www.tatamotors.com

www.tata.com/tata_motors

www.ashokleyland.com

www.eicher.com

www.jsaautomobile.com

www.mahindra.com

www.personed.co.in/pkotler

http://www.genmills.com/corporate/company/india.aspx

http://wwwwikipedia.com

http://www.iegd.institut.com

http://www.rotman.utoronto.com

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