A Study On New Product Development With Tata Nano And Comparitive Study On Maruti 800

PREFACE This is the specialization project on a study on new product development for Tata Nano along with a comparative study between Tata Nano and Maruti 800. The objective of this study is to gain knowledge about how Tata brought this new product i.e., Nano up to the development stage and finally going to launch it on 23rd of March. The project was assigned by Dipti Mam (co-coordinator)

and

Dwani

Mam

(assistant

co-

ordinator). During the project I researched on how Tata developed Nano costing Rs 1 lakh and what will be its effects. This study also includes comparison between Tata Nano and Maruti800. A survey was also done for understanding

consumer

buying

pattern

and

preferences. Thus, this study is based on new product development in marketing for Tata Nano. 1

ACKNOWLEDGEMENT I am thankful to SNDT University and Gandhi Mahila College and specially BMS department who provided me with the opportunity for carrying out the study. I would also like to acknowledge my sincere thanks to our co-ordinator Dipti Mam. Under their

valuable

guidance,

constant

interest

and

encouragement, who have devoted her ever-precious time from their busy schedule and helped me in completing the project. Her co-operation was not only useful for this project but will be a constant source of inspiration for me in the future. I express gratitude to various faculty members especially Sandeep Sir for his valuable

2

guidance which was a good learning experience in order to make my efforts successful. Special,

continual

assistance

while

collecting the data was provided by the respondents. I wish to acknowledge my special thanks to them for their help and cooperation in order to complete this project. I am also thankful to those who have helped me intellectually in preparation of this project directly or indirectly. I am deeply indebted to the various sources of information from relevant sites from internet and books which helped me a lot in my study and helped me to learn a lot.

3

Table of contents: Sr. No.

subject

Pg. No

1 Objective of research

5

2 Methodology of research

6

Introduction to the subject –new product 3 development 7 4 Introduction to Tata Nano

19

5 Tata Nano and new product development

25

6 Some myths about Nano

44

Comparison between Nano and Maruti 7 800 49 8 Data collection method

56

9 Analysis of data collection

60

10 Various charts

60

11 Some feedback about Nano

67

12 Conclusion

70

4

Research objectives o To study about how a new product- Tata Nano was developed based on marketing theory of “new product development.” o To study about what made possible for Tata to develop and produce a car for just Rs. One lakh. o To study the objectives and target customers of Tata’s one lakh car o To study and compare between Tata Nano and Maruti 800 o

To study on customers buying behavior and preferences and views about Tata Nano and Maruti 800 by various methods of data collection.

5

RESEARCH METHODOLOGY o Research methodology deals with the various methods of research. The purpose of the research methodology is to describe the research procedure used in the research. o Research methodology helps in carrying out the project report in by analyzing the various research findings

collected

through

the

data

collection

methods.

6

Introduction To New Product Development Meaning Of Product: E.g.:- milk, computer, shoes, service after sales, railway services etc. a product can be divided into two categories o Tangible goods o Intangible goods Tangible products are known as goods that can be touched, felt and seen. E.g.:- computer, mobile phone etc Intangible products are known as services that cannot be touched and seen as the customer can feel and experience only after utilizing it. E.g.:- service after sales

7

New Product Development: A product can be considered new under the following situations: New-to-the-world products  New product lines  Additions to existing product lines  Improvements and revisions of existing products  Repositioning  Cost reductions

8

Stages Of New Product Development Before the introduction of a product into the market, it goes through several stages of development. These stages are known as stages of new product development. It includes the following:

Idea Generation: Companies seek new ideas to enhance the performance of the existing products and to innovate new ideas. This stage is called idea generation stage. There are many sources for idea generation. It may be from customers, dealers etc. Employees throughout the company can also be a source of idea. Toyota claims that its employees submit two million ideas annually over 85% of which are implemented.

9

Companies

also

find

good

ideas

by

researching competitor’s products and services. They can find out what the customers like or dislike about their competitor’s products. Ideas can also come from investors. External research, surveys industrial publications research and development etc. But the main source of idea generation is the customers by their grievances and complains and feedback. However, although ideas can flow from many sources, it is not feasible to implement all the ideas generated due to lack of time and capital.

Idea Screening The main purpose of idea generation is to collect a larger number of ideas. However, not all ideas can be commercially viable. Therefore, the companies filter the less viable ideas with the help of systematic process. Companies can use various parameters to screen the ideas such as market size, technical capabilities, potential competition etc.

10

Addressing the following issues will also help the companies to analysis the attractiveness of ideas.  Whether the product idea match the existing products of the company.  The degree to which the new product can cannibalize

the

sale

of

the

existing

product.  Company’s ability to produce and market the product.  Buying

behavior

and

the

probable

changes in the environment. While

screening

the

ideas,

an

organization may commit two types or errors. Drop error where the firm rejects a very good idea. Cro error where a company selects a poor idea. 11

Concept Testing And Development: All ideas that survive in the process of screening will be studied in details. They will be developed into mature products. At this stage, the idea is submitted for the external evaluation to get a feedback from the market. It helps a firm are organization to collect important information like customers initial reactions towards the product development. During this stage, new product idea is described in the form of one or more benefit that is then presented to a sample of potential customers for their reactions.

Marketing Strategy: Following a successful concept test, the new product manager will develop a preliminary strategy plan

12

for introducing new product in the market. The plan consists of three parts.  The first part describes the target market size, structure and behavior for the first few years.  The

second

part

outlines

the

planned

price

distribution strategy and marketing budget for the 1st year.  The third part of marketing strategy plan describes the long run sales and profit goals and the marketing mix strategy over time.

Business Analyses. After

management

develops

the

product

concept and market strategy, it can evaluate the business attractiveness. Business analyses are the first in-depth financial evaluation of new product to be developed. Here management needs to prepare sales cost and profit projections to determine whether they satisfy company objectives. If they do, then concept can move to the development stage. SOWT analysis will be conducted at 13

this stage by the organization. It

also

includes

the

following:

Total sales estimation:These are the sum of estimated first- time sales, replacement sales and repeat sales. Its method depends upon whether the product is one time purchase(an engagement ring), an infrequently purchased products like toaster, auto mobile etc. or a frequently purchased products like consumer and industrial non durables.

Estimation costs and profits. The R&D, manufacturing, marketing and financial departments estimates the costs. The profitability of the new product is estimated through various financial tools. The simplest technique is the breakeven analysis in which the management estimates how many units of the product the company would have to sell to break even with the given price and cost structure. If the management believes that sales could easily reach the break even 14

number, it is likely to move the project into development stage.

Product Development In this stage, detailed technical analysis is conducted to know whether the product produced at costs is low enough to make the final price attractive to the customer. Here a working model or a prototype is developed to disclose all tangible and intangible attributes of the product. A product protocol is prepared which is a detailed downiest containing the important attributes that are expected in the product. Once the protocol has been developed,

it

is

handed

over

to

the

research

the

development department to develop the prototype of the product.

15

Test Marketing: The test marketing is the stage where the product is introduced in a few selected cities. During this stage, the company has to fate the following expense:  High advertisement  High manufacturing cost.  High distribution cost etc. For testing the product, marketer needs to make the decision on the following issues.  The no. of cities in which the product is to be tested.  Geographic location of the cities.  Time to carry ort test marketing Through this exercise, company can know the customers response, feedback, suggestions,

16

complaints and any other changes required to be done for product modification. After successfully laughing the product in selected cities the company launches the new product in all other cities. There are certain methods of product testing.

Alpha Testing In this method, a group of target audience is selected from the employees of the company.

Beta Testing: It is carried out at the customer’s site. Generally, it is applicable for industrial products where the customization takes place.

Gamma Testing: It is carried out on a long term basis where the customers uses the product extensively and gives response after a long period of time. Say six months.

17

Commercialization: The

results

of

the

test

marketing

help

marketers to decide the changes that are needed in the marketing mix before entering into the market. It also helps the

marketer

to

decide

the

amount

of

production

distribution strategy, selling efforts and other issue like providing guarantees, service after sales etc. the product enters the market during the commercialization stage.

18

Introduction To Tata Motors: o

Tata Motors was established in 1945, when the company began making trains.

o

It has its manufacturing base in Jamshedpur, Lucknow, Pune and soon one more plant is going to established at Singur, West Bengal.

o

Product Manufactured - Passenger Cars and commercial vehicle

o Installed Capacity - 350,000-400,000 vehicles a year o Investment - Rs 2,500 crore (Rs 25 billion) o Turnover - $21.9 billion (Rs 967,229 million) o

Employees - 2,46,000/22001

19

o

Tata Motors had created the wealth Rs. 320 billion during 2001-2006 and stood among top 10 wealth creators in India.

Tata Nano - ONE LAKH CAR PROJECT “People’s Car” “A promise is a promise,” said Rattan Tata, Chairman, Tata Motors, on 10th January, 2008, when the Nano was first displayed at the Auto Show in Delhi. The Nano project didn’t grab the attention of only Indians; the entire world had their eyes glued to the world’s cheapest car. A truly People’s Car, this time is from India. Though the dealer price is Rs. 1 lakh, the price on road, when it will be launched, will reach around Rs. 1,25,00 but it will be still more affordable and will be more ecofriendly than most other cars giving a mileage of around 23km/liters. The price of the car is such that a lot of rich

20

and HNIs, if interested, can buy the car just by a single swipe of their credit cards. Providing a car worth rupees one lakh car was the dream of the chairman of Tata motors Mr. Rattan Tata. And with high qualified IT skills people he has shown the Indian talents to whole the world.



Idea conceived by -

Rattan

Tata 

Cost of development -



Manufacturing cost (excluding dealer margin and taxes)-

1700 crores

Rs 65,000

per unit 

Development of Design -

India



Time for designing the car -

4 years



Team -

A team of 150 engineers , everyone

below age 28 

Biggest hurdle - To make a car cheap car without Compromising design

21

May western countries as well as many foreign countries have accepted Indian IT skills.

Details Of Nano Specs: Engine: 624 cc / 33 bhp 4 door, 5 seater (and yes 4 Wheeled too) Rear Engine Weight: 600 kgs Mileage - 22-23 km/liter

Variants: Standard Deluxe (with AC)

Future: Diesel Variant Exports outside India or assembly plants outside 22

Comparison 8% less in length (bumper to bumper) with respect to Maruti 800 21% more in inner space with respect to Maruti 800

Looks: Front side looks more like Matiz (or Spark as we now call it)Back side looks more like India with those long tail lights.

Insight: People often criticize something that is making waves everywhere. This has also been the case with Tata Nano. Competitors, safety regulators, environmentalists and most others conceived the problems that India will face, when such a car is available, much before the actual launch of the car. This will result into: OLD GENERATION

NEW GENERATION

23

24

SOWT Analysis  STRENGTH  Brand name TATA  Cost price low  Fuel efficient  Safe  OPPORTUNITIE

 Large market for selling  Awareness in

the market  First car in low range  Can hit in global market

S

 WEAKNESS  Low power  Not a status symbol  Delay in manufacturing  Limited features  THREATS  Company rival  Not sure to hit in rural and semi-urban areas 25

New Product Development And Nano As seen before, A product can be considered new under the following situations: New-to-the-world products  New product lines  Additions to existing product lines  Improvements and revisions of existing products  Repositioning  Cost reductions As far as Nano is concerned, it falls into new to the world products in the context that it has made a history

for

the

cheapest

car

ever

made

without

compromising on quality. I.e. best way value analysis.

It can also be considered as new product in the since of cost reduction as it’s the first time in the history that such a cheap car is produced. The story of the Nano is not confined to its impact on the auto industry. It's a tale that illuminates the India

of

today—an

eager,

ambitious

nation

with

a

combination of engineering talent, a desire for low costs and value, and the hunger of young managers looking to break from a hidebound corporate environment. Indeed, the team that worked on the Nano—on average aged between 25 and 30—has helped to flatten Tata Motors' stodgy, multilayered management structure, which has resulted

in

"organizational

an

unexpected

side-benefit

innovation".

called

Idea Generation And Nano A dream is born – Says, “I observed families riding on twowheelers -- the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby. Add to that the slippery roads & Night time too. It is downright dangerous. It led me to wonder whether one could conceive of a safe, affordable, allweather form of transport for such a family.” So when Tata Motors needed someone to take charge of the company's most ambitious plan yet to build the world's cheapest car ever Ravi Kant, who by then had become the company's managing director, again turned to Wagh. Wagh remembers what he learned marketing the

little truck. "People want to move from two-wheelers to four-wheelers," he says. "Today they can't afford it."

More and more can, but Indian car buyers today represent a tiny slice of a potentially giant market India has just seven cars per 1,000 people. India's auto industry has grown an average of 12% for the past decade, but just 1.3 million passenger vehicles were sold in India in the fiscal year ending March 2006. That means a billion Indians buy about the same number of cars in a year as 300 million Americans buy in a month. If four wheels cost as little as two wheels, that could

change

fast.

About

7

million

scooters

and

motorcycles were sold in India last year, typically for prices between 30,000 rupees and 70,000 rupees, about $675 to $1,600. Tata is targeting a price of 100,000 rupees one lakh, in Indian terms of measurement or about $2,500 at current exchange rates, for its small car. That sounds

impossibly cheap in the West but remains three times higher than India's annual per capita income. The average pay for factory workers at Tata Motors is just $5,500 a year.

Idea screening The next step was the screening of idea. How is this dream possible? What should they make?  A scooter with two extra wheels at the back for better stability?  An Auto-rickshaw with four wheels?  A three wheeled car like a closed auto- rickshaw??  A four wheeled car made of Engineering Plastics?  A Four wheeled rural car?  Rolled up Plastic curtains in place of windows?  Openings like Auto rickshaws from the side  A four wheeled open car with safety side bars?

But the market wanted a car and if they build a people’s car it should be a car and not something that people would say,“ Ah! That’s just a scooter with four wheels or an autorickshaw with four wheels & not really a Car.”

Trying to build a car cheap enough for motorcycle buyers seems to make sense now but seemed crazy several years ago when Rattan Tata, longtime chairman of Tata Motors and scion of the nation's giant Tata Group conglomerate, first mentioned his dream of building a one-lakh car in 2003. "They are still saying it can't be done," he says, insisting that it can and will. "Everybody is talking of small cars as $5,000 or $7,000. After we get done with it, there will hopefully be a new definition

of

low-cost."

Concept Testing And Developing Before

starting

the

project,

Wagh

did

something no one at Tata Motors ever had: He talked to customers. The three-wheeler men inevitably insisted on a cheap, dependable truck that could go from village to market carrying, say, a ton of onions or potatoes, one night, as sunset approached, Wagh stuck with one rickshaw driver. He says, "I kept asking the question. Why? Why?

Why

do

you

want

a

four-wheeler?"

Wagh

remembered. Finally, he got the real answer. It turned out

it wasn't really a problem of transportation of vegetables “If I had a four-wheeler, I would have better marriage prospects in my village," the young man said. Drivers of three-wheelers are looked down upon in India. Wagh realized that four wheels had emotional, not just practical, appeal.

Thus the new product was now to be developed. But what type of product?

The car to cost Rs. 1 lakh on road.

 The car should be built on a different platform than conventional ones.  It must be meeting all the safety and regulatory requirements.

 It has to be built on a scale which shall be more than double the earlier launches of similar products and the ramp up must be smooth.  The car has to be designed so that it can be exported to other countries as the domestic demand may not materialize as per projections.  The car must be a beacon for the Indian Automobile industry and prove to the world that we are capable to take any challenge and come out worthy winners.

That quest to build the world's cheapest car hasn't ended. The Nano should be available this fall, but the mission began back in 2003, when Rattan Tata, chairman of Tata Motors and the $50 billion Tata conglomerate, set a challenge to build a "people's car". Tata gave an engineering team, led by 32-year-old star engineer

Garish Wagh, three requirements for the new vehicle: It should be low-cost, adhere to regulatory requirements, and achieve performance targets such as fuel efficiency and acceleration capacity. The design team initially came up with a vehicle which had bars instead of doors and plastic flaps to keep out the monsoon rains. It was closer to a quadricycle than a car, and the first prototype, even a bigger engine, which boosted the power by nearly 20 per cent, was still dismal. "It was an embarrassment," says Wagh.

But

failure

didn’t

stop

them

they quickly realized it was necessary to bring everyone on board, "else it leads to last-minute heartache and delays". Every morning, he would spend an hour or two on the floor of the Pune factory, insisting that everyone involved— designers, manufacturing teams, and vendor development

people—be

there

to

accelerate

decision-making

and

problem-solving. Over time, Wagh's team grew to comprise some 500 engineers, an impractically large group to gather on a daily basis. So instead, a core team of five engineers gathered every day at three pm to discuss the latest developments. Each engineer represented a different part of the car: engine and transmission, body, vehicle integration, safety and regulation, and industrial design. The body had to be changed because Rattan Tata, over six feet tall himself, wanted it to be easy for tall people to get in and out of the car. "Imagine the plight of the body designer—he went through hundreds of iterations, then at the last minute the car length was increased by 100 millimeters!" Wagh says. The attention to detail paid off: When the car rolled onto the dais at the Auto Show in New Delhi in January, and Rattan Tata stepped out of the driver's seat with ease, it made an immediate impact. What shook the automobile world most was the fact that the designers seem to have done the impossible: The sleek, sophisticated Nano doesn't look

flimsy or inexpensive. If it had been an upgraded scooter on four wheels, Tata still would have been applauded for making a family of four safer on Indian roads. The Nano, however, affords both safety and status. "The innovation wasn't in technology; it was in a mindset change".

Business Analysis Cost Since the car had to be built within a cost of Rs. 1 Lac, no conventional design would work as the costs shall be higher and so the entire car has to be redesigned.

What makes Nano so less expensive can be well understood from the following diagram

The design has to question the need of each and every component from the point of view of its necessity of existence and also the minimum requirements of its functionality. Value Engineering concepts have to be deployed to finalize the minimum requirements. Disruptive Technology:

Is a Technology that brings radical change by introducing new ways of doing things usually at a Technology that is:  Significantly

cheaper

than

existing

Technology.  Is much higher performing?  Has greater functionality and  Is more convenient to Use.  Brings to market a totally different Value proposition than the one available and can

change

the

Paradigm

about

a

product.

The Guiding factor was that the cost has to be minimized for each component yet maintaining its basic functionality. The Alternatives are:

 Reduce Consumption of Material being used.  Alternate Suppliers to get same material at fewer prices.  Use alternate materials.  Eliminate use of Material.  Eliminate a process Or a Combination of the above. The design was outsourced to Italy's Institute of Development in Automotive Engineering, but Tata himself ordered changes along the way. Most recently he vetoed the design of the windshield wipers. His solution: a single wiper instead of two, giving the car a cleaner look. THE COST REDUCTION PARADIGM Value Engineering Alternatives:

The target was very clearly defined that within the given cost structure of 1 Lac all the components

have to be allocated a maximum price and the same had to be achieved using the available alternatives. The

Guiding

factor

was

that

the

tax

structure, on materials and manufacturing, must support the final cost of Rs. 1 Lac The Decisions were:  Establish factory in a tax free zone.  Get the tax advantages on infrastructure development.  Get the suppliers to establish base near the factory.  Get special concessions from State Govt.  In short select a manufacturing location where

all

the

advantages

could

be

achieved. In short select a manufacturing location where all the advantages could be achieved.

Total sales estimation Now

the

question

was,

“how

much

to

produce”  It was estimated that the demand for the people’s car shall be at least twice the demand for Maruti 800, the lowest end car. Initial projections were at about 500 K cars per year.  The basic reason was the conviction that the target price shall redefine the 4 wheeler segment.  The price decision of Rs 1 lakh is definitely going to make a lot many people transit to 4-wheeler fold and that shall explode the demand.  F only 10% customers of 9 Million two wheeler market transit to 4-wheelers it shall amount to 50% of the passenger car market share.

 It was decided to set up plants with 5 lacs cars per annum capacity and ramp the same up in stages, in line with increase in market demand.

The initial response to the Nano has been overwhelming and the tiny, Noddy-land car is expected to help the company cross several milestones. With revenues at Rs 1,29,994 crore for the financial year 2006-7, and group companies enjoying a market capitalization of Rs 2,51,487 crore as on January 10, 2008, the Tata Group is on a strong footing, contributing more than 3 per cent to India's GDP. Nano, being the world's cheapest car, has made international players sit up in amazement and the company has received proposals from some African, Latin American and Southeast Asian countries to manufacture the

car

there.

Product Development And finally the product was developed with the following features.  Engine Capacity

Bosch 624 c.c. twin cylinder

 Low capacity, Lighter, sufficient with better Power Rear Engine to reduce the transmission length using a balancer shaft.  4 Speed Manual Gear Box  All Aluminum Engine  Higher thermal conductivity than cast iron, Lighter and so better mileage  Engine Management System by Bosch  Superb control over emission and smooth acceleration.  Dimensions L: 3.1m, W: 1.5m, H: 1.6m

 Less length but more inner cabin space due to height. Comfortable leg room.  Independent Front & Rear Suspension McPherson Strut in Front & Coil spring & trailing arm in rear.  Better ride than Maruti 800.  Single piece ribbed steel body with safety features such as crumple zones, intrusion resistant doors, seat belts, strong seats & anchorages.  Safety requirements are adequately met.  Single Wiper in place of two.  Cost effective yet functionality is met  Tube less Tires  Weight reduced by 2 Kg. Cost reductions 200 Rs. And in line with modern vehicles  Instrument console in the centre  Elegant to look at and can be used both in Left Hand & Right hand version.

 The list goes on and on.  The Final verdict THE CAR COSTS Rs 1 lac

Test Marketing And Commercialization Nano is soon going to launch by the end of April. It will be commercialized in whole of India. It is mostly targeted to the middle class and lower middle class people. The effects of Nano and its commercialization will be soon known after it comes into the market.

Some myths about Nano When

Nano

was

introduced,

it

surprised everyone. It had so many features but the cost was as low as Rs. 1 lakh. This was really amazing. Due to this, many competitors, governments and others opposed Nano. Moreover, it’s not a new thing that whenever a new concept is developed, people oppose. They find more

limitations then seeing the benefits. Following are some myths about Nano. But these are then proved to be wrong.

Myth no 1 Nano is an unsafe car  The car has an all steel body.  It meets the mandatory Frontal Impact requirements.  It also meets the Side Impact requirements although they are not mandatory in India.

Myth no 2 Nano will greatly increase the Pollution Level  The car is Bharat IV and Euro IV compliant although these norms, which are stricter than the present Bharat III norms, are yet to be introduced.

 It has lower carbon footprint, 20 mg / Km of Carbon Dioxide emission as compared to 45mg / Km, emitted by most of the two wheelers. 

Its Multi Port Fuel Injection system is controlled by an intelligent Bosch Engine Management system which controls the combustion cycle precisely to ensure compliance to all emission norms.

Myth no 3 Nano will struggle to perform  Although the car has 33 bops as the maximum horsepower it has a low kerb weight of 550 Kg and so has a higher power-to – weight ratio when compared to many existing cars running on Indian roads.  The car has a matching acceleration to Maruti 800 and also a good top speed. Although the manufacturers have estimated 90 Kms as the maximum speed the car can go up to 105 Kms per hour top speed.

Myth no 4 Nano has very little leg room  Although the car is 8% smaller than Maruti 800 it has lot of extra leg room at front as there is no engine

compartment. This also leaves sufficient knee room at the rear.  The car has a tall boy type design so there is lot of head space and also enough Shoulder room. 

The mono volume put at the corners and although the setter, three slim rear.

design and the wheels having been have freed up lot of in- cabin space car may be registered as a fouradults can sit comfortably at the

Myth no 5 Cheap means Uncomfortable  More comfortable than some of the cars selling at even twice the price. Leaves sufficient knee room at the rear.  Easy to get in & out of the car because of perfect seat height from the ground.  Suspension systems are good and the trailing arms with coil springs are not found in cheap cars. Rear.

Myth no 6 It’s very difficult for a rear - engine car to work.  Rear engines work in many cheap as well as expensive cars.

 Auto-rickshaws at one end and Formula One cars on the other extreme all use rear engines.  Maruti Omni too has a rear engine, under the seat and no one has been burnt due to that.  Cooling is easier in Nano as compared to some vans and there are the air ducts on either side behind the edge of the doors, which allow air to seep in for both cooling & for intake.

Myth no 7 There is a shortage of storage space.  There is some storage space although not much.  The rear seat with parcel shelf accommodating a large suitcase.

folds

to

allow

 Small articles can be placed under the bonnet also.

Myth no 8 Cutting Corners is evident everywhere  Cost cutting is done by smart designing rather than taking out the essentials.

 One wiper has been taken out but the functionality is intact. Wind shield washer fluid jets are mounted on the wiper itself rather than the body.  Wheels are held by three bolts instead of four.  On the contrary, MRF tubeless tyres and all Alumininium engine, have been used, which are more expensive than conventional ones.

TATA NANO V/S MARUTI 800 Competitor As we know the price of Nano car is much affordable for middle class people. This car can be easily

affordable by middle class people. In the Indian market it will face only by one competitor that is Maruti – 800, which produced by Maruti udyog. The real question arise who will have the last laugh Tata or Maruti 800? The answer is neither Tata nor Maruti 800 but they are the buyers who will have the last laugh Can Nano beat the popularity of Maruti 800. All the things depend on their marketing strategy that how they will attract to Indian middle class customers. Never mind the fact that what was touted as a Rs.100,000 car will cost at least a fifth more and that's for

the

Jagdish

standard Khattar,

non-air a

former

conditioned head

of

version. Maruti

800

manufacturer Maruti Udyog Ltd, says it's too early to say whether the Nano will overtake the original. "It's a good product but it's still too early to say whether it will overtake the 800 because it caters to a totally new market segment," he said while watching a live telecast of Tata's press conference after unveiling of the

Nano. But clearly, at least one other manufacturer was worried. Whether or not the Nano will overtake the Maruti 800, one thing is for sure: the current Auto Expo will be remembered for Tata's people's car and for that product alone. It is the Nano that has captured the hearts and minds of a majority of the spectators. Price of Maruti in major city of India – 800 (a/c LPG) (Figures in rupees) Mumbai Delhi Bangalore Kolkata Lucknow

245648 228858 231407 236826 232542

TATA NANO V/S MARUTI 800

FEATURES OF TATA NANO COMPRAED TO MARUTI 800 COST:  The dealer price of Maruti 800 varies from city to city. The dealer price in Delhi is 1.97 laths and the road price is approximately 2.28 laky Indian rupees.  The dealer price of Nano is just 1.00 lakhs rupees and the road price is only 1.26 lakhs rupees. So here we can put the equation 2 * Nano = 1* Maruti – 800

ENGINE:

 Maruti 800: – 800 cc  Tata Nano :623 cc (better fuel than Maruti 800)

ENGINE TYPE:

 Maruti 800 – petrol/LPG  Nano : petrol (diesel version will be later) SEATING CAPACITY:  Maruti 800: 4+1 person  Nano: 4+1 person FUEL TANK CAPACITY:  Maruti800 : 28 Lt (petrol), 19.2 (LPG) 

Nano: WEIGHT

30 Lt.

 Maruti 800 – more than 690 kg (gross weight is 1000 kg)  Nano – more than 600 kg TOP SPEED:  Maruti 800 : 120 km/hr  Nano : 90 km /hr SEGMENT: Maruti 800 – middle class people Nano: lower and middle class people. FUEL CONSUMPTION: Maruti 800: city 13.6

and highway 17.6 km

Nano: city 22 km and highway 26 km DIMENSIONS: Length

Maruti 800 3.335 meters

Tata Nano 3.1 meters

Width

(131.3 inch 1.440 meters

1.5 meters

(56.7 inch)

Height  BREAKS:

(55.3 inches)

•

Maruti800: Front Disk, Rear Drum

•

Nano: Front Disk, Rear Drum

 COLOURS Maruti 800

Tata Nano:

1.6 meters

The Nano are not much taller and broader as compared to Maruti – 800 but it has 21 percent larger spaces in side but 8 percent short than Maruti.

Disadvantages of NANO vs. Maruti 800 1. LPG/CNG version is doubtful. 2. Top Speed will be laser than 800. 3. Space for Language is less.

Data Collection Methods The success of any project or market survey depends heavily on the data collection and analysis. It is necessary that the data collected is a reliable data in order to achieve the research objective. For research regarding the views of people about Tata Nano and its comparison between Tata Nano and Maruti 800 two types of data collection methods were used • Primary Data • Secondary Data

PRIMARY DATA: Primary data is the data, which are fresh and collected for the first time, and are original in character. There are various Primary Data Collection techniques, which have helped in data gathering. This was collected through questioner. Questionnaires

are

a

popular

means

of

collecting data, but are difficult to design and often require many rewrites before an acceptable questionnaire is produced. Advantages:  Can be posted, e-mailed or faxed.  Wide geographic coverage.  Relatively cheap.  No prior arrangements are needed.  Avoids embarrassment on the part of the respondent.  Respondent can consider responses.

 No interviewer bias. Disadvantages:  Design problems.  Questions have to be relatively simple.  Time delay whilst waiting for responses to be returned.  Several reminders may be required.  Assumes no literacy problems.  No control over who completes it.  Not

possible

to

give

assistance

if

required.  Problems

with

incomplete

questionnaires.

Points

kept

questioner

in

mind

while

preparing

the

 Liberal spacing  Length of the questioner is kept normal  Logical Order 

Question are

short, simple and to the

point;

unnecessary

all

words

are

avoided  Close ended questions are asked so that its easy for the respondent to fill the questioner and also easy to analysis  Sample population was selected on the basis of random sampling method.

SECONDARY DATA: Secondary data are those data, which have been already collected or published for the purpose other than specific research need at hand. This data is simply used up by the researcher for his purpose of collected data

and it’s used for the same purpose. The secondary data sources here in this project are: Websites Books

Various Results Of Analysis In The Form Of Charts

% of people who are aware of tata nano

yes no

the % of people who are aware of the tata’s new product – Nano car is shown with the help of pie chart. o

Here, blue color indicates that people are aware of tata Nano

o

And red color indicates the % of people who are not aware of tata Nano. While analyzing the chart, we can know that

only 3% of the total sample population is not aware about tata Nano. This shows the great effect of media, newspaper and launching of this product.

Preferences Of Different Age Group Regarding Buying Of Nano.

this chart shows the preference of different age group to buy tata nano when it is launched. Here on x- axis, no of respondents is given. And on y – axis the age group is given. o

Blue triangle indicates willingness to purchase tata Nano.

o

Red triangle indicates that the respondent is not willing to pruchase it

o And green indicates that the respondent is not sure. While analysing this chart, we can see that the young generation is egar to buy the product. While due

to some misunderstandings about tata nano, the older generation doesn’t desire to buy it or are not sure about it.

Preferences Of The Respondents Regarding Buying Of Motor Car, Maruti 800 And Tata Nano

this

chart

shows

the preference

of

the

respondent. The question asked in the questioner was, “if you were to buy one of the following, which would you prefer.” the options given were: motor bike

Maruti 800

tata Nano

by having a glance at the chart, we can see that majority went for tata Nano. Maruti 800 got very less votes. This shows a tough time for Maruti in future.

Views about success of Nano

the question asked here was,”do you think Nano will be successful” the options given were yes

no

not sure. It’s very interesting to note here that none of

the respondent said that Nano won’t be successful. As shown in the chart, the portion of purple color which shows failure is not there at all. But again every body does not believe in its success. As seen form the chart, 50% of the respondent has a doubt about success of Nano.

Nano- A People’s Car !!!

in this chart, number of respondents is given on the y axis and some features are given on x- axis. The question asked here is, “What is it that makes Nano a people’s car?” By analyzing the chart, we can say that people consider the cost factor the most for Nano followed by the innovation. Even looks has got quite positive reply. Nano is a product that is developed perfectly at minimum cost without sacrificing the quality.

Some Feedbacks Based On Questioner: Positive Response  I have one more angle to look at Nano. I think it is worlds most hyped about gadget after the iPhone. Did I just say “gadget”. Well, yes Tata Nano is not just a car; one can also look at it like an expensive gadget which also gives us mobility. One of the very few cute looking gadgets that all us geeks will love, who would generally be interested in stuff that is sleek and powerful. I am also hopeful that Tata will launch FCV and alternative fuel cars soon.

 I definitely would like to buy the car. Who would not want a good car for just 100000 Rs?  It’s just cool. One should definitely buy it. 

Cheap As it is, but very smart and sexy. I would defiantly buy it.

 Congratulations to Mr. Rattan Tata. He did a real good job.

Negative Response

 It is impossible to build a car at such a price. No one has been able to do it so far. It is just not possible.  It will be more like a scooter with a roof. I am sure no one can make the car for the cost of two bikes.  This car is another auto rickshaw. It will add a lot to the traffic on road.  It shall be a half car with no roof. I doubt if it will be able to go up the flyovers.  It may be an upgraded Auto-rickshaw with plastic body. It shall be a very unsafe car as the very idea of 1 Lac car is too farfetched to be true.  It shall never meet the emission norms. We shall choke on the poisonous emissions from this car.

The disbelief kept piling up and up and was further compounded by the competitors adding their own mite to the speculations.

Mixed Response

 IT HAS NOT BEEN DONE EVER. Even the nearest car is double the cost. Let us see what Mr. Tata can do to maintain the price line.  I am not very convinced but would definitely go for it if it is safe.  I hope I can take my family of 4 in this car. I wish Tata's make this dream a reality.



I know the talk is that it is a myth. However miracles do happen. Let us wait and watch.

The reaction was a mixed one. People wished it to be true but were very cautious about expressing their optimism.

Conclusion MY OPINION After the study of various aspects I found that – Nano Car Is Definitely Not For:-

 Someone looking for better performance

 Someone who is looking to impress  Someone who want to speed trial on Sunday  Someone who is looking for long drives. But Nano Car Is Defiantly For –

 Someone who is looking to buy a car but cannot afford much price.  A students who want to go college, tuition instead of bike etc.  Someone who depends on second hand car.  For a house wife who can buy a car with her own savings.  Someone who depends on scooter. So Nano is not a basically a luxury cars but it can fulfilled the all capacity for middle class people.

Impact Of Tata Nano On Life Of Common Man

 In India every one can afford a Nano, just as we buy any electronic appliances for a home uses.  Decrease in price of second hand car.  High traffic on roads due to sale of exceeds car on roads.  Increase in loan on car installments.

And finally Nano is definitely better than Maruti 800. tata has succeeded in value engineering of the product and its great success for tata’s. It’s something on which India can feel proud of. Nano has been developed effectively.