Marketing Dissertation

Abstract
The main goals of this research are to explore the importance and the present context of Indian automobile industries by discussing about Tata Nano car as a reference and examine the role of information technology to promote small cars in the market. A drastic change in an automobile industry is identified by the researcher in this research in term of technology, market potential, and innovations. All these changes in an automobile industry are described by taking Tata Nano car as a reference which was introduced by Ratan Tata in New Delhi in the year 2008. According to the records presented by Crisil the rating agency, nano technologies of Tata Nano is increased by 65%. The main aim of this innovation is to focus on the fast increases of the petrol price in India. This car changed the scenario of entire Indian automobile industry and major parts of business get affected by technological changes. Furthermore, it would be great to study about the two different innovations belong to the same field also to examine the issues and improvements in the two define innovations let say Tata Nano and Maruti 800. On comparing Tata Nano with Maruti 800 will help to understand the reasons behind the economy growth In this research secondary approach of data collection is adapted and apart from this t test is used to analyze the data. Data which is collected with the help of secondary approach is then plotted on the graph in order to analyze the outcome.
Divya Singh-10191303
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Acknowledgement
I would be very thankful to all those who helped me in completing this research. First of all I would like to thank my supervisor Dr. Mizan Rahman from the University of Lincoln whose help, suggestions, and encouragement helped me in writing this research successfully. He guided me throughout the process very well. He has an excellent command over the dissertation process. I feel lucky that I was guided by most experience and knowledgeable supervisor of our University. I am thankful to University of Lincoln for providing me this opportunity and for allowing me to access the library and IT facilities which helped me in collecting data for my research. The library and IT room facilities of Lincoln University are perfect and flexible. I would like to thank my father Mr. K.P Singh for continuous motivation. I am really obliged to all these who helped me for completing my research.
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Chapter 1- Introduction
Today technology plays a vital role in the upbringing of the product across all over the world. According to the definition of technological changes asserted by Stomeman (1983), it is the process by which economies changes overtime with respect of the products they produce and the process used to produce them. In the same industry many competitors was ready to compete with Tata nano, but Tata motors is a worldwide known brand which was successful during the time of recession. The main reason to select this topic is the boom of automobile industry in India because this is one of the key sectors of the Indian economy. The first passengers car was introduced in the market in the year 1940 by the automobile sector this time a drastic change in economy was recorded. According to BCC News (2009), because of recession cars production gets reduced and due to this The State Bank of India decided to cut down interest rate on cars loans. At the same time Ratan Tata took the advantage of recession and launch Tata Nano by conducting marketing campaign, he thought that low cost car would affect customers mind and motivate them to buy this innovation. In order to explain the local consumers perception about the Nano car and technology behind this innovation primary research will be conducted, while on the other hand best source to find the information is secondary research.
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But primary research has some limitation like for instance cost and time but these limitations can be eliminated by collecting data with extra focus or best way is to collect data by talking small samples instead of taking huge samples.
1.1 Relevance for MBA studies

This topic is based on the concept of marketing. This research illustrates the contribution of automobile industries in Indian economy. This piece of work can be used by other researchers to develop their business related reports.
1.2 Purpose and Goal

The purposes of this research are: First of all a researcher want to elaborate the impact of technological changes on marketing strategy of a business with reference to automobile industry and secondly examine the role of production innovation and information technology in the upbringing of the product by taking the recent stunning example i.e. Tata Nano car. The main goal of this research is to examine the context of automobile industry in India with reference to change in technology and its impact on marketing strategy, and also have to focus on the small innovations in automobile industry like for example Tata Nano through this research.
1.3 Report outline

The rest of the format of this research is as follow: In chapter-1 Introduction- this includes detail background of the topic and aim and purpose of the research. In chapter-2 Academic literature is reviewed this chapter includes theory and research on automobile industry.
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In chapter-3 Methodology this chapter includes different types of survey methods and research design. In chapter-4 Data interpretation and analysis this included various types of graphs, tables, and analysis with the help of t test. In chapter-5 Findings and discussion- in this chapter findings will discuss which is generated with the help of t test analysis. In chapter-6 Conclusion. In chapter-7 appendix- which includes interview report and survey questionnaire.
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Chapter 2-Review of Literature

According to Saunders et al (2003), academic literature review is the base on which your research is built and built a foundation for the defined key areas. As mentioned above that this chapter includes theory and empirical research on automobile industry in India. This research is categorized into four main parts of literature i.e. marketing, technology, automobile industry, and product innovation
management. First of all theory part includes role of production innovation management and information technology in automobile industry and also discuss about the concept of marketing; marketing strategy, marketing mix, segmentation of market with respect to Tata nano in India. Apart from these this chapter includes developing economies and contribution of automobile industry in Indian economy. Furthermore, little focus on low income markets and hits of recessions on Indian automobile industry. The empirical research part includes analysis of automobile sector in India.
2.1 Product innovation definition:

Kang (2009) asserts that, product innovation plays a vital role in order to provide more value for organization by increasing the consumers utility, but utility is said to be effective only when investment is done by an innovating organization in marketing also. This investment is essential, so that consumers get the chance to know about the developed product in the market. Two main dimensions are defined in the product innovation: first dimension deals with the innovation which is associated to the product. In the other dimension introduction of product innovation is must in the market so that newly developed products can be sold. In order to
maximize companys profit introduction and marketing of product innovation these two are the vital steps of entire process. To elaborate this concept furthermore it is defined with the reference of Tata Nano car.
2.1.1 Product innovation with reference to Tata nano:

Three innovations were incorporates by Nano asserted by J. Tellis which on combining together make this car enormous. First of all, modular design was in use which alters a well-informed mechanic to set up the car in an appropriate workshop. In order to independent workshop outsourcing of assembly can be done by Tata, after that Nano can be gathered on consumers demand. This is one of the cheapest innovations because of which costly labor is removed from the manufacturers side not only this, but also on the dealers side this innovation allows for distributed
entrepreneurship. Now second innovation is about the low cost of this car which comes on combining its frills exclusion, its comfort and numbers of lighter elements like for instance simple window without power, bulbs and engine parts, Nano is the lightest four wheeler vehicle with efficient engine gets around 67 miles/ gallon. These innovations let Tata to launch Nano at the price of $2,000 almost half as compared to the next cheapest car in India i.e. Maruti 800.
2.2 Contribution of IT in automobile industry and in product innovation

Bred and Slovenia (2003), asserts that the automobile industry is often characterized in terms of the limitation of the scope of discussion to the manufacture and sale of new automobiles. In order to broad the scope which either consist of complements set,
and constraints with the help of which a sector becomes the largest and significant human endeavor, so for this an especial panel was made by Bred and Slovenia together. Information technology and its role in this process never been centralized, more emphasized as infrastructural, it making remarkable changes in almost every part of the industry but all changes are having delicacy within them. This research will analyze capabilities of modern industry of turning data into the information and changes brought by them in field of
communications. Although this report considers different information technologies around the industry such as internet, intranet and e-commerce etc. but it is different from them. This report emphasize on more slow empowerments that provided to industry by the information and technology that added new features to the company. This report is more in terms of relation between information and technology and automobiles. Whole change is justified into six different aspects. Assets regulation and risk mitigation with other asset provision. Control over atmospheric emissions. Health and safety measures for passengers. Entertainment facilities, convenience, and control. Fast and coordinated production and distribution channels. Relationship between manufacturers and consumers and their maintenance. Influence of the information technology has been large and deep within the designing of vehicle itself. Many examples of influence of technology over the automobile industry like emission controls, safety measures, and improved entertainment can be seen. Information Technology has shown significant role in maintenance
of information of OEM, dealers and users and improve relation with them, by good control and improvement in supply chain management to change whole face of sales and services. Although these changes are not so significant and visible and their effect is also not so rapid but they have very strong and concrete effects. There is no surprise that these changes are not visible. Transformation of automobile industry is in continuous pace, it not only transforming business but also effecting socio-economic scenario where production, transformation and transportation of knowledge, values and beliefs are easy. Development in communications like internet and World Wide Web is visible and marked as astonishing but here future is unpredictable. Use of IT within the automobile industry is contemporary. Involvement of automobile industry with the information technology is by different ways, and growing with the improvement of technology. Complete effect of information
technology takes long time as it influence slowly but in strong manner and more importantly it has to be visible infrastructure wise. Diverse and improved effect of information technology over the automotive industry and relation between both of them makes this study more important and facilitate in-depth analysis of automotive industry and information technology applied on it.
2.3 Marketing Definition:

According to Kotler (2006) the concept of marketing is defined as the management process responsible for identifying, anticipating and satisfying customers requirements profitably. From time to time marketing term and its concept has been changed and these changes are criticized by different authors because this concept plays a vital role in the business, but novel
theory is presented by the (Jober, 2004; P.6), The achievement of the corporate goals through meeting and exceeding customers needs better than the competition.
2.4 What is marketing mix?

According to Kotler (2006) the term marketing mix is defined as a planned mix of the controllable elements of a products
marketing commonly termed as 4Ps: product, price, place, and promotion. All these four essential elements are altered according to the need until the correct combination is introduced that can fulfill the need and want of the customers. In most of the case the first P i.e. product stands for presentation. According to Czinkota and Roinkainen (2007) marketing mix is defined as the combination of marketing elements used in the sale of a particular product, the marketing elements center around four distinct functions, sometimes called the Four Ps: product, price, place, and promotion. In order to make a successful business plan or marketing strategy plan all these elements should be considered on the other hand, it can be changed, modified or contracted according to the need to sell a product.
2.4.1 Marketing mix with reference to Tata Nano in India

Price strategies: This car is specially designed for middle class family so that a common man can afford four wheeler vehicles, in general Tata motors product are easy to access and affordable by the normal public. Tata motors always focus middle class families as their target market now this time Nano is their trump card. In order to
promote products different strategies are used by Tata motors like for instance they provide discount coupons every month, gift hampers etc. Discounts depends on two factors either it can be made from businesss profit or may be from profit earned by dealers. 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.
Promotion: Second marketing mix is promotion but before discussing about this strategy it is very important to focus on the main aim what we have to achieve. So the prime goal of promotion strategies is to explore awareness about the brand and also explore the concept of this novel innovation i.e. Tata Nano. In the short span of time this car becomes so popular in the market and declares as the worlds cheapest car and for international customers Tata motors is still a novel brand. In order to maintain a brand name a company has to follow elegant advertisement or good campaigning with full details about the product because awareness about the brand is necessary to build a base for brand justice.
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Now, the second goal of this strategy is knowledge it means that we target to build preference, liking of a Nano car. Before any promotions Nano is compared by other cheap cars available in the market because we have to very specific about the goals what we have to achieve. It is obvious that prime motto of Tata motors is to promote Nano in India. This innovation is very different and stunning concept for Indians especially for middle class families. In the year 2009, July it was introduced in the international market. Processes: In order to achieve good reputation, BSC i.e. Balanced Scorecard Collaborative is adapted by the Tata motors. Physical Evidence: Last Ps of marketing mix is physical evidence in which the entire management of the Tata motors has to perform well even in the recession. Ratan Tata introduced the most demanding car of the year in New Delhi, around 203,000 bookings had received and almost 70 percent of customers were willing to wait for this car till 2010.
2.5 Marketing Segmentation:

According to Doole and Lowe (2004), the process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics is called as marketing segmentation. The main concept behind marketing mix is to fulfill the criteria of customers expectation.
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2.5.1 Marketing Segmentation with reference to Tata Nano:

Segmentation on the basis of consumers market In market many of the researchers segment the market by taking four characteristics into consideration like for instance geographic, psychographic, and demographic and then they examine whether these defined segments fulfill the criteria or not. On the other hand, some researchers believe to segment the market by taking behavior into consideration like use of brand name, use of festivals. After successful segmentation researchers now examine whether customers response for the particular segment or not like for instance researchers study whether quality is important or low price for people who purchase products. In case of automobile sector these characteristics may differ in demographic, geographic and psychographic. The main characteristics in automobile industry for segmentation are geographic, psychographic,
demographic and behavioral segmentation.
Geographic Segmentation:
Geographic segmentation calls for dividing the market into different geographical units such as nations, states, regions, countries, cities or neighborhoods. In the Indian context geographic segmentation assumes importance due to variations in consumer preference and purchase habits across different regions and states of the country. In India geographic segmentation is done by dividing the market into rural and urban areas and difference between both the divisions depends on the market potential and parameters. In order to know about the population normally this segmentation is required, like in India there are around 5000 towns and around 648000 villages.
According to the want and need of the customers geographic market may fluctuate. This can be explained by taking simple live example of Rajasthan into consideration where air coolers are required during the summer season.
Demographic segmentation:
In this segmentation researchers divide the entire market in the basis of following elements like age, gender, income, family size, education, and occupation. If taking age factor then consumers of Tata nano are normally above 18 and retired people. Now the family size, normally four to five members in a family would prefer to buy Tata nano, but it is declared that nano has 40% more sitting space as compared to maruti 800. Demand and popularity of Tata nano is not affected by the gender factor because both the gender i.e. male and female appreciates this car, but the most affecting factor is income because this car is designed in just Rs. 1 Lac a normal middle class man can afford this car easily by paying 10,000 per month.
Psychographic segmentation:
This is tool by which a researcher can understand the psychology of the customer about the product in this segmentation market is divided on the basis of lifestyle or values.
Behavioral Segmentation:
In this segmentation when market is divided on the basis of customers attitude towards the use of product then such segmentation is said to be behavioral segmentation. This car is especially designed for the middle class families and also for
special occasion like Indian believe in tradition they purchase this car on festivals, personal occasion like birthday, marriage anniversary.
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Channel of Distribution for Tata Nano
1.Direct marketing channel which is also called as (zero-level channel) Now in India and other international counties this innovation is sold directly to the customers. This process is very easy and convenient for the customers to book Tata Nano they can directly come to sales office and make a deal with Tata motors dealers or in other way they can book this car through campaign. Another facility also they can use like through customer car booking or they can book online also by surfing www.tatanao.com. This is one of the best ways to save money and maintain the cheap price of car. 2 Physical Flow channel Now once the customers book their car and order it in sale office in the next step a path will be send by Tata Nano to India. Furthermore, after order engineers will assemble Nano in the workshop and deliver it to the customers. This channel of distribution is called as physical flow. 3 Flow of Payment Customers have two options in order to pay the bill either they can use cash payment services or they can take loan from the banks. Process of Tata Nano to collect bill is very efficient and easy by direct payment customers can save their money because they need not to pay to the third party or any extra commission.
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4 Flow of Information Flow of information in Tata motors is very convenient; in order to know more about new product innovation, price list and many more information they can get that information straight through Tata motors. When on reading internet blogs on the website, reading mails and receiving call, employees in Tata motors can understand that what exactly customers want in terms of services, discounts, accessories or something else. In case suppose customer have some doubt or want to register a complaint then in this case Tata motors helps them directly and sort out their problem immediately. 5 Flow of Promotion 5.1 Marketing Campaign In this type of promotion flow product can be promoted by following two ways one is directly and second one is indirectly. In direct marketing campaign Tata Nano is promoted in a well organizes manner by conducting road shows and events. This is the method in which Nano is promoted face to face in the market to target their target audience. In method customers have bright opportunity to test the car on the road. In the indirect method of marketing promotion, promotion of Tata nano is promoted through internet, TV channels, radio and newspaper. By this method brand awareness can be creates across all over the world.
2.7 Overview of Indian Economy:

Due to increase in the energy cost and raw materials growth of GDP has declined over previous year, but all in all an impressive improvement can be seen in the growth of GDP contributed by India economy. Because of decline in GDP, industrial growth is
also affected as a result of which rise in interest rate and less money supply is recorded. 10% growth was seen in the automotive sector in India during the year, because of which slight growth can also be seen in commercial vehicles sector. Data of commercial vehicles sold during the year was around 499,948 and sales were increased to 1.53 million of passengers car.
2.8 Overview of Automobile Industry:

General overview of automobile industry is considered under this section, with reference to international yearbook which includes all the industrial statics, according to UNIDO survey (2008), Indian automobile industry is among the top 15 automobile makers industry by looking at the two categories present data shows that car production ranks 11th and commercial vehicles ranks 13th. Continues growth of automotive sector is recorded i.e. 18%. If we would compare consumers of cars in China and India then in case as compares to China large number of people use car in India around 100 people and in China around 82 people. On comparing data of present year and previous year then around 11.9% of growth in export is recorded as compared to the last year. Due to increase in growth various tax relief policies have made by the Government of India which create unforgettable impact on Indian automotive sector, in which 18% per annum growth is recorded this is reason that why India becomes the main hub for global investors such as Volvo, Ford and G.M. But in the passengers vehicle industry slight decline is observed, but by providing promotional discounts on products this could be managed and grow by 11.1%. During budget held in February 08 Government of India was declared reduction in excise duty because of this and because of new models in market, growth in
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export of vehicles also increased by 11.9% as compared to the previous year.
2.9 Impact of automobile industry on Indian economy:

According to Harish Vanami (2010), Automobile industry in India at present is one of the biggest industries that are facing stiff competition for domestic as well as foreign competitors and also it is the major contributor to Indian economy. Every year so many commercial cars and passengers cars are launching by automobile industries in the market this scenario is very common and also because of this a common man can also afford his car. It is said by the government of India that in the year 1991 enormous growth was seen in Indian automobile industry. By looking such an elegant growth in automobile sector, India becomes the major spot for manufacturing and assembling units many of the outsiders select India as a main hub. After Japan, South Korea and Thailand, India is declared as the ninth largest automobile industry and fourth largest in the field of automobile export. With reference to previous growth in automobile sector it is estimated that in upcoming years it will become the major industries across all over the world. This would happen not because of sales only, but other factors will also responsible for this such as novel design, manufacturing, elegant promotions and marketing. Companies like Maruti Udyog, Honda Siel Cars India Ltd., Hyundai Motors India Ltd., Fiat, General Motors India Pvt. Ltd., Hindustan Motors, Mahindra, Toyota, Kirloskar Motor Ltd., these all companies are playing a leading role in automotive sector. On
the other hand, Hero Honda, Bajaj and TVS these companies mostly deal about two wheelers whereas, but companies such as Tata-Telco, Eicher Motors, Bajaj, Mahindra and Mahindra these companies generally bother about heavy duty vehicles.
2.10 Recession hits Indian automobile industry:

Entire world get affected by the recession period and India was also suffering from recession hit. India is among the top growing or developing country, but entire economy of India gets in trouble because of recession. The bankruptcy case was filed in General motors and ford among the whole car manufactures. Due to recession General Motor tussles a lot to stay in the market for that it has to show that company has ample of cash to continue its business in the market. Drastic fall in sales was recorded in U.S by 32% by which the Indian car industry was directly affected while on the other hand, fall by 32% and 45% was recorded in sales of GM and Ford respectively . These major car industries have shown a drastic fall in the growth after the recession hit. In the month of August after an enormous recession period because of inflation in the month of September proved to be a promising month with all the settlements.
Now because of the festivals, October is normally considered to be the best month for car sales. Unluckily, this year for Indian automobile industry is not so good in all the aspects. At one side companies like Tata Motors, Ford, GM, and Hyundai are spending huge amount of money to establish a new production plants, but on the other side, SIAM cut down the sales of automobile industry by 12.5% to 9.5% according to BBC News (2008).
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SIAM try to force some manufactures like Tata motors and Maruti Suzuki to cut down their production because of this cut down in production almost 300 workers have to leave their job. For Logan units Mahindra reduced its production.
Furthermore, due to recession in US market forced car buyer to cut down there purchase of bigger cars. With decreasing in car sales production in cars has gone down which create a negative impact on the automobile industry.
In October 2008, overall sales were recorded around 9.05% and on the other hand, in 2007 it was recorded as 12.32%. In the past five years, November showed the maximum fall in car sales.
Maruti Suzuki recorded a fall of 27%, Mahindra & Mahindra recorded a fall of about 40%, and Tata Motors showed 12% decline in the car sales. Some of the cases are defined, and these cases are responsible for recession in India. These cases are defined as follows:
First of all major case of Mumbai terror attack which was one of the major reasons of recession and second case was heavy rain in south India contributes a major distraction in automobile industry.
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Chapter 3- Methodology
This chapter deals with the different styles of research and the concept of research design is discussed in this chapter. Research styles consist of various kind of research while on the other hand design of research paper is explained in research design. In which we have to focus on various issues such as hypothesis, analysis method, research question, and problem during research. In research a researcher can adapt number of research style some of them are very helpful in the research such as Qualitative research style, Quantitative style, Empirical and Conceptual.
Concept of Qualitative Research

This is the method in which all the data is collected with the help of primary source like for instance asking questions to people about their likes and dislikes, conducting interviews about something. In order to understand the sensitive problems this method is very useful. Each method has its pros and cons same with the qualitative research. Advantage of this method is that with the help of qualitative method a researcher can generate his research in more detail while on the other hand the negative side of this method is that it is bit difficult to generalize. Different types of Qualitative Research Observations Interviews Sampling Written materials Questionnaires and
Validity Case study
3.1 Case study: Tata nano in India

First type of research method is case study in which detail research about the Tata Nano is discussed. In the above hierarchy of Tata motors level 1 illustrates that it is a division head which always be on the top of the hierarchy and in second line of the hierarchy all the division shows different areas of Tatas business in the 3 stage if hierarchy division should be defined and last line represents the child position of the parent position.
3.1.1 Company profile and background

A Tata motor is one of the leading automobile industries having sales of Rs. 1, 23,133 cores or in words it generates revenue of 27 billion USD in the year 2010 to 2011. This company leads in the field of commercial vehicles and counted in the top three passenger vehicles and also won the award of manufacturing midsize family cars. Apart for this company is listed in the top four manufactures of heavy vehicles such as trucks and buses. In Tata motor around 23,000 employees are working with vision to be "best in the manner in which we operate best in the products we deliver and best in our value system and ethics." This company was first setup in the year 1945, from now onward every year around 4 million Tata vehicles move on Indian roads. The base of this company has started from Jamshedpur and spread across all over the India such as in Pune, Lucknow, Patnanagar and
Dharwad. New plant was planted by Tata motor at Sanad in Gujarat. This company works as a distributor also and distribute products almost in all part of India. In past last 50 years company progressed a lot and contributes a desirable contribution to Indian economy stimuli and clients needs. Engineering research centre of this company had established in the year 1996 in which over 2000 engineers and scientists worked. This company has R&D across all over the world. Light commercial vehicles were first developed by the Tata motors in the year 1998, i.e. Tata Indica which is known as indigenous vehicle in India and in the year 2005, another masterpiece was launched by Tata motors and i.e. Tata Ace which is known in India as a mini truck, in the year 2008, Tata motors reviles the worlds cheapest car in the market and i.e. Tata Nano, as per the plan it was launched in India in the year 2009,
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Fig 3.1.2.1
Organization hierarchy of Tata motors
Source adapted from Tata motors
3.1.2 Competition for Tata Nano in the market:

Tata nano is one of the successful achievements of Tata motors. According to Hurst (2009), currently Tata nanos production get soared by around 20% and also sold around 100,000 units of production before even built. This car is one of the worlds cheapest cars and designed by automotive engineers specially to full fill all the basic needs of a middle class family in India. Tata motors sell this car for 100,000 INR (a little over US$2,100), but Tata motors have some different plans in year 2011 they want to expand the market and want to sell Tata nano
in European
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countries. Tata motors would have setup a new plant for nano manufacturing and around 250,000 nanos get manufactured per year, Tata motors have a contract with other automobile companies to build nano under their brand name. Furthermore, the technological impact of the cheapest cars on the worlds growing cities is depends on the number of the vehicles. In terms of CO2 emissions Tata nano has to perform same like prius and get about 50 miles/gallon it happens because of its two small cylinders of 623cc aluminum engine along with whopping of 32hp. The main concern of Tata motors is to make it possible for millions of middle class people to own their private car who would not have a car. According to report presented by Hurst (2009), he said that Center for science and environment in India have faith that out of 50 million of people who ride bikes and scooters 25% of them have their own car all the credit goes to Tata motors for such a small and cheap car like Tata nano others have estimated around 30% who would have their own car. Furthermore, 12.5 to 14 million vehicle buyers are there apart from above estimated data. Enormous numbers of people are there to buy Tata nano car which is unnoticeable so to compete with price of Nano, Toyota, GM, and Nissan all together announced that they are also working on the vehicle of low cost, but now in market after Nano these news have no values. Hurst (2009), asserts that the actual news came on Monday, when automobile company Nissan announced that it will soon launch small car in the market in the year 2010 in India, Thailand, and China as well to challenge Nano, but the crucial turn of this announcement is that when Nissan has to sell around 1 million of vehicles per year by the end of 2013 so that they will get some
profit from this program and possibly near 2011 it will sell this cars across all European countries and U.S.A as well. Because of this competition between Tata motors and Nissan number of new customers will come into the market but on the other hand, some of the different impacts will be expected. Like for example first of all increase in emission of CO2 just from the sheer increase in tailpipes. Using the Prius CO2 emissions of 89g/km as a yardstick, 12.5 million more vehicles would equate about 1.1 million kg/km of emissions. Some of these emissions will be affected by scooters, for transport normally scooters are being used by families because they cannot afford cars. Many of them get bad condition of emission because of two stroke engine. Second impact is about the gasolines increasing price as it is using as a fuel in India. But the main issue which has to be taken into an account is that many of the middle class families now buy these vehicles and run these vehicles with kerosene normally which is quite cheaper as compared to gasoline and as it is cheap has worse emissions than gasoline. The impact of this vehicle on the environment still in debate, but on the other side impact on traffic is not an issue. Last year during peak time in New Delhi when Tata nano was on sale that time average speed of car was already 7mph. all in all around 12.5 million vehicles adding to the country, according to Hurst (2009), apart from if it would be 150,000200,000 vehicle in the city it would be not so surprising. Due to traffic speed get slow this is already slow to a creep. In the conclusion, it depends on individual countries rules and regulation to expand automotive market. But it seems that government is going to stop because automobile makers race to the end of the low income market.
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In New Delhi, a Lite concept car was introduced by Bajaj just before the launch of Tata Motors. In the field of automobiles the second largest two wheeler automobile maker company is Bajaj auto. It is said that this automobile company will launch their car in collaboration with Renault and Nissan but the main point is that it will not be of same cost as that of Tata nano. According to Carlos Ghosn (President and CEO of Renault and Nissan) he has set a target of 2010 for Bajaj-Renault car, while it is hard to put any time-frame, we can say in two-four years we can expect to have the product ready," this statement was asserted by the managing director of Bajaj auto i.e. Mr. Rajiv Bajaj told reporters of BBC News (2009) in New Delhi. Ghosn (2009) has asserted earlier that in India Renault was looking for a car of $3,000 a move triggered by Tata Motors' Rs 1 Lac. car that will be unveiled later this week.
3.1.3 Comparison between Tata Nano and Maruti 800:

Price: On comparing Tata Nano with Maruti 800, Tata Nano is the cheapest car across all over the world of Rs. 1 Lac or $2500 after all the legal formalities i.e. after road tax, registration, sales tax and so on is going to be the cheapest car in the world. On road it would cost around 1.3 Lac ($3300). On contract with Tata nano, cost of Maruti 800 is around Rs 1.95 ($ 4900), which is also considered as a cheapest car in the market before Tata nano is launched. In order to fascinate customers
Maruti Suzuki will surely cut down the price of Maruti 800 after the launching of Tata Nano. Comparison in terms of Looks: In Terms of Looks, surely Maruti 800 is beaten by Tata Nano according to Auto Expo (2008) in New Delhi apart from this it really looks fascinating considering it to be the worlds cheapest car. Hopefully it would have the same model during production which was there at Auto Expo. Considering Maruti 800 on the other side in terms of looks, it has old style and also it require lots of efforts to beat Tata Nano in terms of looks. Apart from this Maruti 800 has around 10% longer exterior dimensions so due to this it is bit difficult to drive in traffic, but Tata Nano has small exterior because of which it is easy to drive this car in traffic congestion. Power: Now taking power into an account then in case of Tata Nano it consumes around 33 BHP power as compares to Maruti 800 (37 BHP),but in terms of weight Tata Nano is lighter having around 580 Kg. whereas weight of Maruti 800 is around 660 Kg. Now comparing the ratio and power all together then in case Tata Nano is at 0.057 BHP/Kg while on the other hand, Maruti 800 is at 0.056 BHP/Kg. by comparing these two aspects it is concluded that both the car have almost same power which is really worth full for almost half price. Comparison on the basis of Noise and Harshness: This is the only area where Tata Nano get beaten by Maruti 800according to auto experts and reviewers (2008), in terms of noise Tata nano is quite noisy at above the speed of 60Km/hr. the
reason behind this is its engine which is located at the rear and the insulation noise is not that much high apart from this reason one more reason effects and that is low capacity of engine (625 CC) which is really low as compared to Maruti 800 which has engine capacity around 800 CC. Safety is another term on the basis of which these two cars can be compared: In terms of safety definitely Maruti 800 is quite safe because it is tested and tired car for long time and also it has good holding capacity as well because of front mounted engine, safe and strong body as well. Other point of comparison is mileage or fuel efficiency: Definitely, Tata Nano beats Maruti 800 in terms of fuel efficiency and the reason for this is low engine capacity which enhances its fuel consumption capacity and taking Euro 5 norms into account on the basis of which this innovation is been designed. Euro 5 norms means that engine has good capacity and fuel efficient. While on the other hand, mileage of Maruti 800 is around 15 to 18 KM / liter, but the mileage of Nano is 20 KM / L on high way which would save fuel cost around 20% which is good for a person who drives a lot. Interior Space: Lets take interior space into an account then it is said that interior space in both the cars is almost same or in other words it is said that Nano has 20% greater space as compared to Maruti 800 as said by Tata motors (2008).
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3.1.4 Competitors of Tata Nano in market- Piaggio NT3 will launch in the year 2012 as expected.
In the segment of commercial vehicle Piaggio plays a major role it is entirely a new concept in the market called as Piaggio NT3. In the year 2010 during the month of November Company had presented a plan to launch the NT3 in a market and now after six months, for the same vehicle it comes again in the news. At the end of the year 2012 the Italian auto motive company introduce the concept of NT3 in two models have different capacities of engine. This car is basically designed for low income market like for instance Bajaj ultra low cost (ULC) vehicle and Tata Nano. According to Ravi Chopra (2008) the chairman and managing director of Piaggio vehicle asserted that The demand for small cars will be large in the densely populated countries and cities. These cars also will be able to travel to places where the road infrastructure is not the best. The concept of all these small cars is based on the Vespa and Ape design. Furthermore, Ravi Chopra (2008) includes more concepts, Our investments in Baramati plant are targeted towards preparing for future.
3.1.5 Technology used in the innovation of Tata Nano:

Technology plays an important role in the upbringing of Tata Nano and contributes a lot to put this small vehicle into the market, technology which is used in Tata Nano car is called as the frugal engineering, in order to modify time-to-market the application of PLM technologies are used. Frugal engineering made Tata Nano successful in the market in India. The main purpose of this innovation is to represent the full-vehicle engineering in the market and also illustrates the challenges are faced by the engineers in the
innovation of the most affordable car called Tata Nano. Ratan Tata (2008) said that, The innovative thinking that brought the Tata Nano to market is symbolic of what Tata Technologies has to offer the manufacturing industry; Tata Technologies was front-andcenter in engineering and developing the Nano working closely with Tata Motors and with a significant number of the Nano project suppliers. There are 59 applications out of which 28 are contributed by Tata Technologies itself. Ashutosh Mishra the vice president of Tata motors said that, our work on the Nano is part of a sweeping wave of change within the automotive industry and within
manufacturing overall the use of truly global engineering resources that utilize innovative CAD processes and PLM tools. In the year 2010, during the January month in U.S.A on business tour an innovation get kicked off, with an event called special debut during last year which was held in Detroit i.e. in North American International Auto Show. Between January-November 2010, the presentation traveled throughout the U.S., Canada and Europe with its message of the importance of vision, innovation and frugal engineering principles. This is the first presentation of better innovation in 2011. PLM Innovation Congress 2011 takes place 19-20 January in London. It is the only independent PLM event in Europe, bringing together the worlds leading directors of engineering and process improvement, design engineers, PDM experts, IT directors, and other industry thought leaders
3.1.6 Future plans of Tata Motors after Tata Nano:

Shikha Malhotra (2008), Product Development Manager asserts that Tata nanos boom back again in the market after all the praise
for being the smallest and worlds affordable car, and also it is said that by using the same concept Tata motors making a plan to build an electric and hybrid model of the same car. The reason behind this stunning innovation is easy transportation or in other words this car was built to fulfill all the dreams of essential transportation of a middle class family, but positive side of this car is that it is same in all the aspects whether its about space, speed, luxury, and safety. Many of the customers after the sale of first slot become the fan of this innovation and it is compared with many of the luxury cars available in the market like for instance the Ford model-T by which a drastic change brought in the field of automobile industry. Upcoming plans of Tatas includes higher end models which can be developed on the basis of this platform and will be sold at the higher price but target market will be surely an international markets. Furthermore, Tata motors has plans to launch this new innovation in different part of the world like Brazil, Indonesia, China, and Russia. Looking back at the history, it is obvious that Bajaj Chetak and Maruti 800 both wrote golden words in the Indian automobile industry; in fact Tata Nano has the same power to do this. By looking the running progress of Tata Nano there may be a possibility for Indian and global markets to introduce Tata Nano petrol, diesel, convertible, electric, and also Hybrid variants in the upcoming years.
3.1.7 Drawback of nano car:

Shyam kurup (2009) asserts that this car is made with the help of light weight steel Nano is made of light weighing steel and the drawback of this car is that the front side of Nano is small enough which can cause large number of damages. Apart from this the maximum speed of car is about 90km/hr and has no power steering, but according to engineers for such a small car it is not
essential to provide power steering. In the basic model, some features are missing like for instance AC, CD player, power brakes, and steering as well apart from these it has low fuel storing capacity of 30lts.
3.1.8 Tata motors Partnership with: GKN Drivelines Unique Technology - Jaguar XFR
In order to reduce the cost of Tata Nano, driveline solution is used by GKN in order to show wide capability on vehicle, this solution is applied at the side shaft of this innovation which leads to ultra low cost through to the side shafts, prop shafts and electronic limited slip differential on Jaguar Land Rovers premium sports saloon, the Jaguar XFR. Tata Nano GKN Driveline has indulged with Tata as a partner in order to concentrate on side shaft enhancement so that a mini, low cost Tata Nano would emerged as soon as possible.
3.1.9 Target Market of Nano car:

The main target market of Tata Nano is middle class family who cannot afford four wheelers and always use to drive two wheelers with their children, sometimes which might be very risky in high congested traffic. In order to keep this in mind Ratan Tata contributes in automotive sector and gives a small and affordable car to Indian market so that a normal middle class man can afford it.
3.2 Interview with the vice president of Tata motors

In this section personal interview is taken about the Tata Nano from the vice president of Tata motors. He plays a vital role in handling all the internal issues of the company, being a vice
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president of Tata motors he is aware with all the internal and external issues related to the Tata nano. During the interview, he gave his opinion on different issues of Tata Nano in the market and little differences were there between what he said and news. For transcript of interview refer appendix 1
3.3 Research design

Research design provides support to whole project, in order to collect the picture about the collection of data, analysis, and how it can be organized then research design is very helpful. For this research qualitative method is adapted for further research which involves interviews, case study, and survey. In this research performance of Tata Nano is compared by other small car in the automobile industry i.e. Maruti 800 this consist of data collection, analysis of automobile industry in recession period. Hypothesis of this study is tested with the help of secondary data and general analysis.
3.4 Problem in research

Impact of recession is noticed across all over the sector, but automobile sector is affected more. After the recession period the entire automobile industry gets changed. Some of the researcher said that small cars boom the economy in the recession on the other hand some of the researcher said that big cars play a major role in recession period. The main issue in this research is to analyze the entire automotive sector during recession period from 2005-2009.
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3.5 Hypothesis
1. Contribution of Tata Nano in the upbringing of Indian economy. 2. Impact of recession on automobile industry.
3.6 Research question

1. How the economy of India gets affected by Tata Nano (unique innovation)? 2. Do automobile industry shows different performance characteristics in recession period?
3.7 Analysis methods

Analysis is a back bone of automobile industry. In this research empirical analysis is adapted as an analysis tool this can be done in three steps. First we need to focus on the review of literature critically and this is done by following description of data, data presentation and last step deals with the testing of hypothesis. We can test hypothesis by adapting statistical test. On the other hand we can describe the data by describing about the data in the research which includes graphs, pie charts, and tables to describe data. Last level of analysis includes hypothesis testing or in other words it is called as statistical test. In this test we can find out about the opinion of population what they think about the particular topic with the help of sampling. With the help of statistical test we can find out the similarities and differences between two groups.
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Now critical review of literature is done by covering data description which includes numbers of graphs which represent the people opinion on Tata Nano and Maruti 800. This data is collected from general survey and through social websites. In the testing part T test is used to compare two samples whether they are equally liked by population or not.
3.8 Empirical Research

This research is quite fascinating with the help of which a researcher may observe the fact or test the data in order to identify the charter and style. On the basis of outcome a researcher tries to interpret data by using the graphs and tables in order to get the outcome.
3.8.1 Analysis on the basis of ratio of Tata Motors and Maruti Suzuki
This is the most generalized form to do research this analysis includes Tata Motors and Maruti Suzuki ratios on the basis of which a researchers can do analysis or in other words this process is called as ratio analysis. With the help of this analysis we can say that which company performing well in which year.
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Source adapted from New Delhi Institute of ManagementPGDM (2008-10) This ratio would help to calculate the availability of profit with respect to shareholders equity per share it means that whenever share help a company gets amount. The above graph shows that in the year 2008 both the companies i.e. Maruti and Tata had shown a soaring EPS, but later on in the year 2009 both the companies fall. Moreover, huge effect was noticed on Tata motors because of Ford motors due to which sales got down as an outcome of which low EPS, but on looking the track of EPS it is estimated that in future Tata motors will do better.
EPS = Net income- Dividends on Preferred stock Average Outstanding shares
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Source adapted from New Delhi Institute of ManagementPGDM (2008-10) Net profit stability of Tata motors is shown in the above graph. Trend shows that net profit margin of Tata motors is stable from 2005 to 2008, but in the year 2009 drastic fall to 3.77 was noticed while on the other hand Maruti Suzuki illustrates an opposite trend from the year 2007 onwards. Future expectation of both the companies is better but expectation from Tata is much higher as compared to Maruti. The reason behind the fall in net profit of Tata is recession which effect economy harshly due to which sales gets decreased and cost get high.
Net profit Ratio = (Net profit) 100
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Source adapted from New Delhi Institute of ManagementPGDM (2008-10) Sales aspect of both the companies is showing increasing trend over 5 years from 2005 to 2009 but sales revenue of Tata motors over past 5 years is much better than Maruti, because of recession both the companies had struggled, but future estimation would be bright.
Source adapted from New Delhi Institute of ManagementPGDM (2008-10)
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This ratio would help to calculate the solvency and thumb rule for this ratio suggests that this ratio should be 1. This time Maruti shows growing trend and quick ratio is greater than 1 expect in 2008. On the other hand Tata was also doing well till 2007 and onwards performance of Tata got decreased.
Quick
Ratio=
(Current
Assets-
Inventories)/
Current
Liabilities
Source adapted from New Delhi Institute of ManagementPGDM (2008-10) Debt plays a vital role in financial growth of the company. It is clear from the graph that debt ratio of Tata Motors is high as compared to Maruti. Enormous debt is used to increase internal operations but in many times bankruptcy happens when the debt cost is more than the revenue generated by the company. Debt-Equity Ratio= Total Debt
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Source adapted from New Delhi Institute of ManagementPGDM (2008-10) In order to check the level of liquidity one of the most reliable and quick tools is used by the companies and i.e. current ratio with the help of which an organization can generate funds for future payments and investments. Above graph shows that both the companies have good liquidity but Maruti has well liquidity as compared to Tata.
Current Ratio= (Current Assets)/Current Liabilities
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Source adapted from New Delhi Institute of ManagementPGDM (2008-10) In order to pay dividends both the companies had shown growing trend till 2008, but in the year 2009 dividend of both the companies fell. It is clear from the above graph that dividend of Tata motors was higher as compared to Maruti. According to graph TATAs dividend was much higher than that of Maruti, it always provided dividend of above 10 per share to its shareholders while maruti stick to below 5 per share, even though the fall in dividend in 2009, still both the companies are earning good profit.
Dividend per Share = Total amount of Dividend Share Outstanding Detail interpretation of data and hypothesis testing is discussed in chapter 4 which includes graph, pie charts and tables on the basis of which a researcher can conclude the outcome of the research.
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3.9 Data sources

In this research secondary data collection method is used and different sources are used to gather the data together such as: 1.Annual report of Tata motors and other automobile companies in order to compare their performance, 2.Online journals, and papers, 3.EBooks, and online Google books in order to get the detail knowledge about the subject, 4.Companys websites and search engines.
3.10 Ethical issues

In this research overall secondary data is used due to which this research has no issues.
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Chapter 4- Data interpretation and Analysis

Under this section critical literature review is discussed along with graphs, plots and statistical test.
4.1 Critical review of literature

In this paper impact of technological changes on marketing strategy in automobile industry with respect to Tata Nano is the main issue of discussion. Entire automobile industry in India gets affected by technology this assumption is taken in this research. The efficiency of Tata Nano depends on how they use frugal engineering technology. After the analysis of two small passengers car it is easy to predict which car in automobile industry is performing well. Analysis is done on the basis of survey questionnaire and ratios of the companies. On this topic many of the researchers did their research. Samir Shah, Business Analyst asserted that from last few years a trend of India car market is growing continually about 17.2%, but because of recession this growth was fell down to 7-8% whether its a Tata Motors, Maruti Suzuki or Mercedes- Benz for all car market got down, but in the year 2009 after the launch of Tata Nano, growth in sales was increasing, Tata Motors performing well in recession. It is asserted by Tata group that recession impacts on their companys profit which fell from 34.1% to 3.47% billion rupees the main reason behind this was recession and less growth in the field of industrial production. Moreover, on comparing this year with the last year, it is clear that sales of this company got down by 20%, but Nano contributed a lot in order to get the sales up because customers spending have gone so fast.
But on looking Marutis data records it is clear from the report which is presented by Samir Shah that decline in sale is less as compared to Tata motors during recession but this decline was covered by Tata Motors after Nano in market. Decline in sales of Maruti is because of material cost and that time rupee value got down. Even the Indias largest tractor manufacturing company i.e. Mahindra and Mahindra was in loss of 20% of profit. It is asserted by Samir Shah that due to recession all the banks and financers who finance cars they disbursed loan amount which is approved to customers. All the modes of payment like for instance OEMs which stands for Original Equipment Manufacturer they got delayed and some of the approved loans got cancelled. According to (Friedlaender, et al., 1983) consumer look at production only from make and model point of view but in reality, automobile production is dependent on layers of supplier driven outputs for final assembly, many automobile companies concentrate on assembling activities only and some have long vertical chains. With novel car deigns automobile industry has long planning and high fixed cost. Automobile industry contributes lot to Indian economy or in other words association of economy scale in industry depends on the use of technology with help of which an industry produces number of different models from the same platform. Some of the issues related to the technology play vital role in order to increase the energy, efficiency of ICE which stands for internal combustion engine, with the help of which an engineer can reduce the weight of vehicles, and provide high-tech safety in a vehicle etc.
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According to Monterio (2001) on one hand the effort of standardization is reducing cost but new challenges on the other as mentioned above is fuelling the cost of production Now a days different tyoe of technologies are using in automobile industry, entire level of technology gets changed use of technology in vehicles is increasing day by day, but the rate by which it is changing is medium. Investors of a company may invest in the technology and the rate by which they invest is very high. Moreover it would be beneficial for a company to invest more in technology so they can be more competitive in the market. Like for instance Tata Motors use frugal engineering in Tata Nano this can be the best example of investment in technology. By refereeing the past few years financial data, it is clear from the data that automobile industry has been unstable because of recession and other major factors, but after the launch of Tata Nano per capita of India got increased and it is estimated that by 2015 it would be 106%. In order to compete in tough market situation export marketing is playing a key role. Tata Motor is one of the leading automobile industries in the field of commercial vehicle segment. In this segment Tata Motors has share of 64% and on the other hand Maruti Suzuki has share of 46% which is also major leading industry in India. Tata motor is planning to expand more in its business. In order to make vehicle successful in the market, customers are very essential part of an automobile industry. Let us discuss about the present case in between the year 2008-09 demand of cars got fall down because customers were not satisfied due to which demand was dropped down. In the manufacture process steel is the essential element but again due to rise in steel price cost of vehicle
got increased same case happened with Tata Nano, but Ratan Tata has his own steel industry so all the rises in steel price were tackled internally and price including all these things get transferred to the end customer. The price of fuel was very high and this is the main hurdle in the promotion of Tata Nano. In the year 2008 because of global recession across all over the world sales fell down including India and economy of India get affected by it. Impact of recession was there on all industry but major effects can be seen on automobile industry including housing and finance. There are number of reasons which are as follows: First of all American Big3 automakers was responsible for that because they led the value chains that was in terrible condition to start with. Samir Shah (2009) asserted that for companies already on life-support, the freezing of credit markets meant cancelled orders, unpaid supplier invoices, and temporarily shuttered plants, huge debt loads, high fixed-capital costs, high labor costs, and immense pension and health care commitments to retirees added to the immediacy of the damage. Second reason for this is high cost and stretches the durability of vehicle promotion and on the other side delay the purchases because of which it is hard to get loans on vehicle. During the year 2008 automobile industry was suffering from the most difficult situation. Assembly collocation and plant parts both terms has faced impact of recession in national and regional production like for instance fall in sales was faced by India by which export area was also affected which declined at the rate of 20.2% during the period of 2008-2009. Major impact of crisis was noticed on plants part and assembly.
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Sutton (2007) asserted that the disadvantage of this approach is that the absorption of global best practices has been proceeding more slowly. Furthermore, economy condition of India has boosted quickly after Tata Nano car in market due to which bank increase loan on cars with less interest, sales and customers demand get high by which entire automobile industry was in boom again. Some of the researches discussed about the concept of technological change in an industry and they explore the reasons why this happens. This is the topic which is still in current discussion for more than seventy year, same technology is examined in many different ways like for instance social, environmental and many more but generally it can be examined from an economical perspective, because technology is responsible for the economic growth across all over the world in every field, and technology plays a key role in the upbringing of economy of the country like for instance use to frugal engineering in Tata Nano make this car so innovative by which economy of India got increased during the period of recession. This word technology first used by socialist, and historians in the year 1970 and this subject was treated as theme of study. How this technological change happens in an industry main area of concern. Overtime two different main directions of explanations for technological change have emerged. First is Technological Determinism, best expressed by the work of Lewis Mumford. 1 The main prediction of Technological Determinism is intrinsic power it means that they believe that in order to develop well future technology should have its own intrinsic power. SCOT
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which stands for Social Construction of Technology which was introduced in the year 1970 2 Social Construction of Technology focuses on the society role, plays a vital role in the upbringing of technology. Many forms are there in between both the approaches, difference between both the approaches is presented in the different manner in the different field of technology. To compete in the market it is essential to have a valuable knowledge of technology. Technology in Tata nano includes intrinsic power which helps to shape the future enhancement path and also create new opportunities. This research helps to understand the importance of technology in the development of economy of the nation. The main purpose of this research to know more about technical change in an automobile industry
4.2 Data interpretation

Graphical representation of Tata Nano respondents:
gender
male 54 female 107
Figure- 1 illustrates the male and female respondents of Tata nano
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The above pie chart depicts the male ratios and female ratios who response more for Tata nano. According to survey conducted by the researcher, it is estimated that huge number of females are fascinated by Tata Nano than the males. In the survey 107 females gave response while only 54 males gave response for Tata Nano.
Age
7% 31% 24%
10%
Below 20 20-25 25-30 30-35 Above 35
28%
Figure-2 illustrates the preference of Tata Nano according to age group Above pie chart illustrates the percentage of the respondents according to the age group. Age groups between 30-35 and 35+ have the highest preference for Tata Nano i.e. 28% and 31% respectively. On the other hand least preference can be seen in the age groups of below 20 and 20-25. All in all, mostly 30+ customers like to buy Tata nano.
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Occupation
3% 8% 22% 26% 41% student Govt. service Private business Any other
Figure-3 depicts the responses according to the occupation In this survey researcher took the responses from the various categories of occupation and out of those categories people from Govt. sector response in large number, whereas people who have their own business are least interested in Tata nano around 3% only. 40 students gave response to this survey, it means the moderate percentage of students prefer Tata Nano.
monthly income
9% 25% 16% 28% 22% below 10k 10k-15k 15k-20k 20k-25k above 25k
Figure -4 illustrates the survey on the basis of monthly income
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Now the next main question on the basis of which this survey is conducted i.e. monthly income. 45 respondents were in favor of 15,000-20,000 monthly income who gave response while on the other hand only 15 respondents gave response to monthly salary below 10,000. On an average it is estimated that normally in order to purchase Tata Nano a family has monthly income from 15,000 to 20,000.
8%
family member
20% below 3 3 to 5 5+
72%
Figure -5 illustrates the size of family 90 respondents would agree with the family size 3-5 according to them this car is suitable for maximum 5 members, but this car is not designed for more than 5 members only 10 respondents gave response in favor of above 5 members.
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area survey
28%
Urban area 72% rural area
Figure-6 illustrates about the area survey In this survey, area is also other major concern on the basis of which a researcher can gather data. 65 respondents are from rural area and 25 are from urban area majority of respondents are from rural area.
do you have vehicle?

25% 75%
yes no
Figure-7 illustrates availability of vehicle in a family Now a days in every family car is very common. The purpose of this question is to know about how many of respondents are having
cars in their family and if they have which type of car they are using and what they are looking for? The above pie chart shows that 75% of respondents are having their own car and only 25% people dont have.
if yes which vehicle you prefer most ?

4% cycle 32% 29% 35% bike scoty car
Figure-8 illustrates the preference of vehicle In the above pie chart percentage difference between bike and car is very minute in fact bike users are more as compared to car users and the reason behind this is traffic congestion because of traffic problems people like to drive bikes instead of cars thats why Ratan Tata has launched such a small car i.e. Tata Nano in the market.
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according to respondents Nano is ? suitable for

teenagers 36% 59% 5%
Figure-9 illustrates the respondents opinion According to the data this is clear that mostly Nano is used by families 59% of respondents choose Nano as a family car and very least respondents choose Nano as a taxi.
taxi family car
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car selection criteria

average 19% 15% 22% 17% out looks speed
10%
17%
less maintenance
Figure-10 illustrates the vehicle selection criteria Low cost does matters, but it comes after brand name according to the respondents said in the questionnaire. Enormous numbers of respondents choose brand name more than low cost and other criterias are almost equally considered.
Maruti 800 or Nano

36% 18% disagree can't say agree
46%
Figure-11 illustrates the preference whether bike or nano
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In the survey researcher had asked question about the liking whether you like to purchase nano instead of maruti 800 or you like maruti 800 instead of nano. 46% respondents could agree that they would like to purchase nano instead of Maruti 800.
4.3 Statistical Analysis

Under this heading statistical test will be perform to analyze the performance of Tata nano and Maruti 800. For the further analysis t test is adapted to perform the analysis of two samples that why in order to compare two samples together this test is adapted. Before performing this test it is essential to have knowledge about the test that how it works. This test is a vital tool with the help of which we can analysis the difference between two samples. In this test three tools are taken into account on the basis of sample assumption. The tools are as follow- t-Test assuming sample variances are equal, ttest assuming sample variances are unequal, and t-Test assuming two samples represents similar subjects. Now t statistic value is determined and this value can be either positive or may be negative it depends on the sample data. With the help of this method we can able to check the mean of two samples on the basis of which we can judge which sample is better. Normally this test is performing when the subjects are different. The formula used in this test is as follows: Basically, this test would help to get the difference in the performance of Tata nano and Maruti 800. This would help to know about the customers choice, t test is performed on the survey questionnaire which is designed to compare Tata nano and maruti 800.
T test for Tata Nano

[DataSet0] C:\Users\home\Desktop\y survey.sav
One-Sample Statistics Std. N would you like to 15 Mean .73 Deviation .458 Std. Mean .118 Error
purchase nano instead of maruti? how many of you like 15 Nano outlook? how many of you like 15 Tata as a brand name? how many of you think 15 Nano is the cheapest car? how many of you are 15 satified with nano .60 .507 .131 .67 .488 .126 .67 .488 .126 .73 .458 .118
performace? how many of you are 15 agreed that nano is a family car? Is millage is good as compared to Maruti 15 .80 .414 .107 .53 .516 .133
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One-Sample Test Test Value = 0 95% Confidence Interval of the Difference Sig. t Df tailed) (2- Mean Difference .733 Lower .48 Upper .99
would you like to purchase nano instead 6.205 14 .000 of maruti? how many of you like Nano outlook? 6.205 14 .000
.733
.48
.99
how many of you like Tata as a brand 5.292 14 .000 name? how many of you think Nano is the 5.292 14 .000 cheapest car? how many of you are satified with nano 4.583 14 .000 performace?
.667
.40
.94
.667
.40
.94
.600
.32
.88
how many of you are agreed that nano 4.000 14 .001 is a family car? Is mileage of Nano is good as 7.483 14 .000
.533
.25
.82
compared to Maruti 800
.800
.57
1.03
In this research alpha value is fixed at 0.05 it means that is P- value is more than this alpha value then there is no difference between two samples, but in case if the value is less than 0.05 that there is difference in two groups and that difference is said to be significant difference. The overall result of this t test is as follows: The P value which is also called as two tail value of Tata Nano is
less than the alpha value i.e. 0.05 it means there is significant difference between both the samples. On the other hand P value of Maruti 800 is also less than the alphs value i.e. 0.05 it means people opinions on both the sample are significantly different. Now in order to calculate the performance of both the companies we can take the average mean of both the companies. Average mean of Tata Nano is 0.67 while on the other hand average mean of Maruti 800 is 0.52 which shows overall performance of Tata Nano is better as compared to Maruti 800.
T test for Maruti 800
Std. Error Mea N how many of you think 15 maruti is more stunning than nano? how many of you like maruti 15 as a brand? how many of you would 15 agree maruti is costly than nano? would you like to purchase 15 maruti instead of nano? how many of you are 15 .53 .516 .133 .33 .488 .126 1.00 .000
a
Mean .40
Std. Deviation .507
n .131
.47
.516
.133
.000
satisfied with maruti800? how many of you like maruti 15 as a family car? how many of you think 15 maruti is best than nano in terms of mileage? a. t cannot be computed because the standard deviation is 0. .33 .488 .126 .60 .507 .131
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One-Sample Test Test Value = 0 95% Confidence Interval of the Difference Mean t How many of you think 3.055 maruti is more stunning than nano? How many of you like 3.500 maruti as a brand? Would you like to purchase 2.646 maruti instead of nano? How many of you are 4.000 satisfied with maruti800? How many of you like 4.583 maruti as a family car? How many of you think 2.646 maruti is best than nano in terms of mileage? 14 .019 .333 .06 .60 14 .000 .600 .32 .88 14 .001 .533 .25 .82 14 .019 .333 .06 .60 14 .004 .467 .18 .75 Df 14 Sig. (2-tailed) .009 Difference .400 Lower .12 Upper .68
As it is already mentioned about the performance now we have to look on buyer choice so for that we have to take average P value of Maruti is .007 and Tata Nanos is .001 it means that in survey most of the people are agreed with Tata Nano instead of Maruti 800.
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Paired T test (summary of both the companies together)

Paired Samples Test Paired Differences 95% Std. Std. Mean Deviation Pair How many of you like Nano outlook? .333 1 - How many of you think maruti is more stunning than nano? .617 Error Mean .159 Interval Difference Lower -.008 Upper .675 T df Confidence of the Sig. (2tailed)
2.092 14 .055
Pair How many of you like Tata as a .200 2 brand name? - How many of you like maruti as a brand?
.775
.200
-.229
.629
1.000 14 .334
Pair how many of you think Nano is the -.333 3 cheapest car? - how many of you would agree maruti is costly than nano? Pair would you like to purchase nano .400 4 instead of maruti? - would you like to purchase maruti instead of nano?
.488
.126
-.604
-.063
2.646
14 .019
.632
.163
.050
.750
2.449 14 .028
Pair how many of you are satified with .067 5 nano performace? - how many of
.704
.182
-.323
.456
.367
14 .719
you are satisfied with maruti800?
Pair how many of you are agreed that -.067 6 nano is a family car? - how many of you like maruti as a family car?
.704
.182
-.456
.323
-.367
14 .719
Pair Is mileage of nano is good enough .467 7 as compared to maruti? - how many of you think maruti is best than nano in terms of mileage?
.640
.165
.112
.821
2.824 14 .014
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Paired T test is done to calculate overall result of both the companies together for instance in case of pair 1 P value is 0.055 which is greater than alpha value i.e. 0.05 it means there is no difference between two sample. Similarly with pair 2, 5 and, pair 6, but in case of pair 3, 4, and pair 7 they have P value less than alpha value which means there is significant difference. Critically, literature is reviewed in chapter 4 where with the help of tables, graphs, and pie charts data is presented. Now in the next chapter all the findings will discuss.
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Chapter 5- Discussion about findings

In this chapter a researcher will discussed about the literature critically. On the particular topic study and findings of other authors are critically reviewed. All the data which was collected with the help of secondary approach should be plotted on the graph in order to get the result of research. These graphs are plotted on the basis of financial ratios of Tata Nano and Maruti 800 and also with the help of survey questionnaire. Furthermore, hypothesis of this research is tested with the help of T test analysis, this test is perform so that we can conclude about the performance and demand of cars and also we can predict that which car performs well in recession period. After t test some findings are determined by the researcher on the basis of outcome of t test: During recession period, Indian economy got affected by Tata Nano. In the year 2009 Tata Nano contributed a major portion to Indian economy while on the other hand Maurti itself a giant in an automobile industry but economy of India was not get affected in recession by Maruti 800 after the launch of Tata Nano. Brand name of cars had no significance difference while on the other hand cost of maruti 800 is higher as compared to the Tata Nano. It means that maximum number of people were agreed that Tata Nano boost Indian economy in the recession period. Ratio analysis of both the companies illustrate that from 20052009 Tata Motors is performing well as compared to Maruti Suzuki. In the year 2009 gradual decline was seen in net profit of Tata Motors because of recession, but after the launch of Tata Nano future expectation will high. SBI increase the loan on cars with less interest.
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T test illustrates the huge difference between Tata Nano and Maruti 800 in terms of outlook, brand name, efficiency, mileage and cost. Overall we can say that how this innovation i.e. Tata Nano changed the entire automobile industry scenario.
Financially, both the companies are strong this is predicted from the ratio analysis done by taking past 5 years trend.
Looking at these findings the answers to the research questions are
Financial ratios of Tata motors are higher as compared to Maruti Suzuki and there are significant differences in outlook, cost and, promotions of Tata Nano that of Maruti Suzuki. On the basis of which performance can be predicted of two cars and according to the t test performance and demand of Tata Nano both are high as compared to Maruti 800 in the field of small passengers car. Thus, future estimation of an Indian economy will be strong and grow in 2008, because this innovation plays a vital role in the upbringing of Indian economy.
Significant difference is found in the performance of Maruti 800 and Tata Nano during recession. Result depicts that Tata Nano contributes a lot to automobile industry during the recession period because of which economy of India was increased. Furthermore, on the basis of outcome of the test it is concluded that performance and demand of Tata Nano is more as compared to Maruti 800. And also with the help of ratio analysis it is concluded that Tata motors did a great job in recession period and boost Indian economy. These findings are similar to other researchers finding.
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Chapter 6- Conclusion
This chapter includes limitation of research, hypothesis evaluation, reflection, and fruit full recommendations for future. Hypothesis is all about when we had started it and after research is it same as before research. Now in the next part of the same chapter will discussed about the limitations in the research. In order to improve research in future, recommendation is essential which will discuss in the subpart of this chapter. Skills used in the research are going to discuss under the heading reflection.
6.1 Hypothesis evaluation

In the beginning of my research hypothesis was- Contribution of Tata Nano in the upbringing of Indian economy. And in the end of my research it is same like Contribution of Tata Nano in the upbringing of Indian economy. So, hypothesis of this research is correct, hypothesis is about the contribution of Tata nano in the upbringing of Indian economy and through testing we have come to know that Tata Nanos performance was well during recession and Indian economy got positively affected by this innovation. In case of ratio analysis only some ratios are different than that of Maruti 800 otherwise, past five years trend shows that Tata motors was performing well as compared to Maruti 800 from 2005 to 2009.
6.2 Limitation in this research

Under limitation two categories will discuss on the basis of which limitation would decided first of all data and second is time. Let us discuss about data first:
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Data- data collection is very hard because for this type of research less data is available. Now the next limitation is time. Time- For this research allotted time is very less because it is hard to gather data from different sources and implement them apart from this decision for methodology is very time consuming and analysis part is very wide.
6.3 Recommendation
It is recommended for future research on the same topic to use both primary and secondary data for further study. For future research it is recommended that analysis data by using the pre and post recession period so that one should have better idea about the performance in both pre and post recession period. And also compare the performance of small passengers cars with the large one not only with the other small car.
6.4 Reflection
Now the last part of this chapter deals with the reflection of this research, during research it is easy to understand the entire research method how it begins and end. It helps in building understanding about the theory and also helps me to understand the concept of empirical research both the terms are interrelated like for instance new theory generates from previous defined empirical study and new empirical study generates from old defined theories. With the help of this dissertation writing skills, knowledge, presentation, use of spss software all these areas are enhanced. It helps to build an effective business report. Research method in University is excellent.
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Chapter 7 Appendixes
This chapter includes interview with the vice president of Tata Motors and survey questionnaire and other essential tables.
Appendix 1 INTERVIEW REPORT

Interview report on Tata Nano with the Vice President of Tata Motors Administrator of Tata Motors: Interview Date: Interview Time: Interview Place: Interviewee: Mishra Interviewer: A: Ashutosh Mishra R: Reporter Reporter Ms. Divya Singh 25 August, 2011 16:00-18:30 Chatting on Skype Vice President of Tata Motors Mr. Ashutosh
R: Thank you very much for giving me this opportunity to know more about this innovation Tata Nano. A: Youre welcome! Hope so I can fulfill all your expectation and can help you in your findings about Tata Nano
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R: Thank you sir, I know you can surely help me in this matter and I will surely get all the essential information about this innovation. First of all, may I know something in brief about this car? A: Sure, this wonder innovation is introduced by Ratan Tata and it was designed basically for middle class family to fulfill their basic transportation need. It has all the essential features which are available in a luxury car. R: As per my knowledge it does not has power steering, power brakes and A.C in lower model so is it worth to have this car? A: Well, you can see for such a small car power steering and brakes is not that much essential and because of other features like space, mileage, and pickup this car is worth in just 1 Lac. R: Okay, so the price of this car is 1 Lac. Is there is any problem of having such a cheap car? A: Well, off course yes there are some social and environmental impacts of Nano because in order to reduce the price the structure of this car is made with the fiber body and also because of such a less price congestion in traffic gets increased, apart from this 1 million cars/year going to introduced due to which number of parking problems can be noticed. On the other hand environmental problems are other major issues like pollution, global warming, and non biodegradable waste products. Some controversies were also there behind this innovation. R: Controversies, can you discuss those controversies in detail? A: Yes off course, during Nanos manufacturing controversies arose in Singur near West Bengal then again in New Delhi six women took protested action along with the slogan on their T shirts that states, the Rs. 1 Lac car has Singur peoples blood on
it. The statement was given by the Trinamool Congress in favor of Singur people that the agriculture land was used for Nanos manufacturing. R: Do these controversies affect Nanos promotions? A: Well, to be very honest I do not think so because enormous numbers of cars were sold in 2008 in New Delhi even after these controversies. According to the President of India Dr A.P.J Abdul Kalam, Dreams- dreams and dreams, because dreams gives vision, vision gives thoughts and finally thoughts lead to the action. Up to some extent it is true that numbers of challenges were faced, but at the end of the day good numbers of cars were sold. R: Well, can you comment on those challenges? A: I can say for Tata Nano the most challenging situation was when the price of fuel was at the pinnacle and when the inflation in steel and tires was recorded up to 30% of $742/ton by Ireson (2008). R: Oh really, then is inflation in steel affect the price of Nano? A: Well, not really because Tata group has its own steel company i.e. Tata Steel LTD so these issues were handled internally. R: In manufacturing what materials are normally used? A: Well, I cant say much about this, engineers can comment on this better, but one thing I can tell you that the entire structure of this car is made up with fiber with low engine capacity. R: What do you think fiber body is safe?
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A: Well, I think it is a drawback of Nano because fiber catches fire easily. R: Can you please tell me about the strength and weakness of this Nano? A: Off course, Why not? Let me tell you about the strength first, it has good fuel efficiency, stylish, and the most important it is just of 1 Lac. Secondly about the weaknesses, then it has fiber structure as I mentioned this in the above question also, furthermore it is really danger to use on hilly areas because of its light structure. R: Oh, so is this car safe to drive on highways? A: Yes, it is safe on highways no need to worry for this because it is pretested by the engineers. R: Okay, any other problems regarding Nano you want to let me know? A: Well, I think I discussed almost all the major points with you. R: Thank you very much, would you like to tell me any other information? A: At the moment, it is hard to remember but yes if you have any further queries then do let me know, you can talk to me any time. R: Lovely! Thank you for your kind cooperation and for your precious time as well. I am very glad to have all these information, yes if I have further questions I do let you know.
~ End of the interview ~
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Appendix 2: Survey Questionnaire

Please put [X] in front of correct answer. 1. Would you like to purchase Nano instead of Maruti 800? .. Yes ..Yes .Yes .Yes .Yes .Yes Nano Marutis performance? Nano Yes ..Yes ..Maruit .No ..No No .No No .No ..No ..No .Maruti
2. Would you like to purchase Maruti 800 instead of Nano? 3. How many of you like Nanos outlook or Marutis outlook? 4. How many of you like Marutis outlook more than Nanos?
5. How many of you like Tata as a brand name?
6. How many of you like Maruti as a brand name?
7. Which car is cheapest Tata Nano or Maruti 800? 8. How many of you are satisfied with Nanos performance or
9. How many of you are agreed with Nano as a family car?
10. How many of you are agreed with Maruti as a family car?
~This is the end of the survey questionnaire~
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Appendix 3
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Appendix 4
GEOGRAPHIC: Region City Rural and semi urban area North Gujarat Gandhinagar Rural village having population over 10,000; semi urban area; small towns with
population between 20,000 and 50,000
DEMOGRAPHIC: Age Family size Gender Income Occupation 18 5 Male or female 10,000/month Students, govt. service, old people
PSYCHOGRAPHIC: Lifestyle Culture oriented, sports and outdoor oriented Compulsive and ambitious Personality
BEHAVIORAL: Occasions Benefits User Status User Rate Loyalty status Regular, special Quality, service, economy First time user Heavy Strong and reliable
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Abstract

1.1 Relevance for MBA studies

1.2 Purpose and Goal

1.3 Report outline

Chapter 2-Review of Literature

2.1 Product innovation definition:

2.1.1 Product innovation with reference to Tata nano:

2.2 Contribution of IT in automobile industry and in product innovation

2.3 Marketing Definition:

2.4 What is marketing mix?

2.4.1 Marketing mix with reference to Tata Nano in India

2.5 Marketing Segmentation:

2.5.1 Marketing Segmentation with reference to Tata Nano:

demographic and behavioral segmentation.

Channel of Distribution for Tata Nano

2.7 Overview of Indian Economy:

2.8 Overview of Automobile Industry:

export of vehicles also increased by 11.9% as compared to the previous year.

2.9 Impact of automobile industry on Indian economy:

2.10 Recession hits Indian automobile industry:

Concept of Qualitative Research

Validity Case study

3.1 Case study: Tata nano in India

3.1.1 Company profile and background

Source adapted from Tata motors

3.1.2 Competition for Tata Nano in the market:

3.1.3 Comparison between Tata Nano and Maruti 800:

3.1.5 Technology used in the innovation of Tata Nano:

3.1.6 Future plans of Tata Motors after Tata Nano:

3.1.7 Drawback of nano car:

3.1.9 Target Market of Nano car:

3.2 Interview with the vice president of Tata motors

3.3 Research design

3.4 Problem in research

3.6 Research question

3.7 Analysis methods

3.8 Empirical Research

EPS = Net income- Dividends on Preferred stock Average Outstanding shares

Net profit Ratio = (Net profit) 100

Source adapted from New Delhi Institute of ManagementPGDM (2008-10)

Current Ratio= (Current Assets)/Current Liabilities

3.9 Data sources

3.10 Ethical issues

Chapter 4- Data interpretation and Analysis

4.1 Critical review of literature

4.2 Data interpretation

Figure- 1 illustrates the male and female respondents of Tata nano

Below 20 20-25 25-30 30-35 Above 35

do you have vehicle?

if yes which vehicle you prefer most ?

according to respondents Nano is ? suitable for

taxi family car

car selection criteria

Maruti 800 or Nano

Figure-11 illustrates the preference whether bike or nano

4.3 Statistical Analysis

T test for Tata Nano

compared to Maruti 800

T test for Maruti 800

Std. Deviation .507

Paired T test (summary of both the companies together)

you are satisfied with maruti800?

Chapter 5- Discussion about findings

Looking at these findings the answers to the research questions are