RESEARCH PROJECT REPORT

On

Brand Perception of Tata Nano in Ghaziabad

(Segment Area- Middle Class Income Family Group)

Submitted to Mahamaya Technical University, Noida in the partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION
ABES INSTITUTE OF MANAGEMENT ACADEMIC SESSION (2011 2012)

Research Guidance Neeraj Dangi A.Prof (Marketing)

Submitted By: Kushal Anand M.B.A IVth Sem. Roll No -1070070015

DECLARATION
We hereby declare that the project report on Brand Perception of Tata Nano in Ghaziabad is an original and authenticated work done by me. We further declare that it has not been submitted elsewhere by any other person in any of the institutes for the award of any degree or diploma.

Kushal Anand Date

ACKNOWLEDGEMENT

The satisfaction Euphoria that accompanies the successful completion of any work would be incomplete unless we mention the name of the person, who made it possible, whose constant guidance and encouragement served as a beckon of light and crowned our efforts with success. We consider it a privilege to express through the pages of this report, a few words of gratitude and respect to those who guided and inspired in the completion of this project.

We are very grateful to our A.Prof Neeraj Dangi who has given us the chance to participate in several interesting tasks. She has supported us with her encouragement and many fruitful discussions. We would also like to express our sincere thanks to Directors of our respective Colleges for their invaluable experience and advice.

Yours truly, Kushal Anand

TABLE OF CONTENTS

I-EXECUTIVE SUMMARY II-INTRODUCTION OF THE TOPIC III- COMPANY PROFILE:i- INTODUCTION OF TATA MOTORS ii -INDUSTRY OVERVIEW iii- COMPETITIVE PROFILING iv- CORE VALUES v- JOINT VENTURES vi - COMPANY VISION AND MISSION IV- MARKETING STRATEGIES V- PRODUCT PRODUCED VI- SWOT ANALYSIS VII- NATIONAL AND INTERNATIONAL IMAGE VIII- OBJECTIVES IX- HYPOTHESIS X- LITERATURE REVIEW XI- RESEARCH METHODOLOGY XII- FINDINGS XIII- CONCLUSION XIV- RECOMMENDATIONS XVI- ANNEXURES XVII- BIBLIOGRAPHY

Executive summary
Tata motors are a part of the Tata and Sons group, founded by Jamshedji Nussarwanji Tata and J. baker. The largest passenger automobile and commercial vehicle manufacturing company of India. Tata motors Limited, was formerly called TELCO (TATA Engineering and locomotive Company). Tata Nano is the cheapest car in the world. It is sold in home country India around Rs 1-lakh i.e approximately USD 2000. It is manufactured by Tata Motor Limited, the largest automobile company in India. Its Chairman, Mr Ratan Tata envisions that Tata Nano to become a Peoples car which is affordable by almost everybody. Tata Nano was first launched in India on 1st April 2009 and expected to be in Indian market by July 2009. Since launching, it has created a huge buzz all over India. Within the first two days of lunching, it has received 5500 booking. The figures keep increasing every day since the launching. What makes Tata Nano so cheap? Basically, by making things smaller, lighter, do away with superficial parts and change the materials wherever possible without compromising the safety and environmental compliance. It is said that Tata Nano has better millage than Toyota Prius and same gas emission as a scooter. Tata Nano will be imported to Malaysia by Tata Industries in parts. It will be assembled in its two factories i.e in Shah Alam, Selangor and Pasir Gudang, Johor Bahru. There are four distribution centres in Peninsular Malaysia i.e. in Kuala Lumpur, Penang, Johor Bahru and Kuantan. All Tata Nano cars will be distributed through these distribution centres only. Order can be made vide these distribution centres or its web site. There are three types of Tata Nano car available i.e. Tata Nano, Tata Nano CX and Tata Nano LX. However, due to hot weather in Malaysia, only Nano CX will be brought to

Malaysia and will be sold here. The selling price of Nano CX in Malaysia is RM 13,704 per unit. It is estimated that gross profit for the first year would yield, second year and Third year. Estimated monthly instalment payment is for seven years period. With this price, the target market is very wide which includes those with income RM 2000 per month, students, female workers and scooters riders. For accomplishment of my objectives I went through collection of primary data in the form of questionnaire and secondary data. A primary research was conducted by collecting data from departments through survey (questionnaire) which took into consideration all the objectives of the research. Secondary Research was also carried out and information from various websites was collected and analyzed. This information mostly consisted of the competitors. In both cases, a small sample was selected keeping in mind the objectives of the research. Probabilistic and NonProbabilistic sampling methods were also used to arrive at the sample size.

INTRODUCTION

The project to create a 1 lakh rupee car began in 2003, under the Chairman of TATA Motors, Ratan Tata. The strategy behind the project was the awareness of the number of Indian families who had two wheeled transport, but couldn't afford a four wheel car. TATA Motors saw that as an unfulfilled demand, and decided to tap into it.

As the world a waits the formal rollout of TATA Nano now from the Sanand plant based in Gujarat, car buying dynamics in India seem to be undergoing a subtle change.

Most believe Nanos price is very attractive and affordable. People who own entry-level cars are now thinking of buying either one Nano in view of its fuel efficiency or maybe two, which will cost the same as their existing car. So, there would be one car for the head of the family and another for the family.

The Nano was unveiled at the 2008 New Delhi Auto Expo Industry convention was that a reliable car couldn't be made at such a low price, so initial media speculation was that the car would be a simple four-wheeled auto rickshaw. However, TATA Motors surprised everyone with the understated elegance of the car, especially considering the size and cost involved.

During development the company reinvented and minimized the manufacturing process, brought in innovative product design, and asked component manufacturers to look at current

work and design approaches in a different perspective to produce logical and simple solutions.

The car was designed at Italy's Institute of Development in Automotive Engineering, with 2Ratan Tata ordering certain changes during the process, such as reducing the number of windscreen wipers from two to one. Instead of researching on low cost components by themselves, TATA has delegated the task to various vendors. The fuel-injection system is being developed by MICO while Brakes India and Bosch Chassis Systems will be supplying low cost braking system. Around 55 prototypes have been tested on Indian roads under varied conditions. The final model was to debut in the last financial quarter this year however now the launch date is unknown given the delay that happened due to the controversy regarding the Singur plant. B r and v al ue t o b e c r ea t e d, c ons um e rs m ust b e co nvi n c ed t h er e a r e m e ani n gfu l differences among brands in the product or service category. In Tata Nanos case, the branding strategy used is corporate name combined with individual product names.

Brand perception is a direct antecedent of relationship influence purchase intention.

quality, and subsequently will

It seems December 2010, is very good especially for tata nano that has achieved staggering 5000 unit sales when compared to 500 in November, 2010. All this can be attributed to tata's well managed marketing marketing efforts. It tried to build the consumer confidence or trust and overcome the negative perception the brand has in the minds of consumers. Consumers had strong negative brand perception as the vehicles got fire in few cases and moreover that was splashed in the most media repeatedly. This led to major concern of safety for Indian consumers, who give high priority for this safety factor. What tata has done is that,

it recalled all the cars and enhanced the safety measures, and assured the public that all the cars that come now onwards will have more safety features. To build the confidence among the potential customers, it has come with four years/60000 kilometers warranty. So it was one of the confidence building step that tata nano has taken up. Moreover, it has decreased the downpayment to be paid and also provided the financing facilities for this small car. Besides, it has come up new advertisement that positions the brand "key to happiness". And the tagline is "Khushiyon ke Chaabi "

I hope 2011 will be more lucrative for tata nano and wish to see more number of cars on the road. As it was a prestigious and challenging task, that was undertaken by Ratan tata to offer four wheeler or car for one lakh for millions of people in this country for whom it was dream and he is the person who come forward and made it a reality.

INTRODUCTION

Profile of Company
Type Traded as Public NSE: TATA MOTORS BSE:500570 , NYSE:TTM NASDAC:TTM Industry Founded Founder Headquarter Area Served Key People Automotive 1945 JRD Tata Mumbai, India Worldwide Ratan Tata, Chairman Ravi kant, Vice chairman Carl peter forster.CEO Prakash Telang,MD (India ) Ravi Pisharody,President (CVBU) Products Services Design Revenue Net Income Employees Website $20.572 billion (2010) $844million (2010) 50,000 (2010) TataMotors.com Automobiles, Engines Outsourced Engineering and

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 Tata motors Ltd. is a multinational corporation and part of the Tata group. It was formerly known as TELCO (TATA engineering and locomotive Company). It is indias largest company in the automobile with consolidated revenues of USD 20 milliion in 2009-2010 and commercial Vehicle sector. In 2010 Tata motors surpassed reliance to win the coveted title of indias most valuable brand in a annual survey conducted by Brand Finance and The Economics Times. Tata motors is the first company from indias engineering sector to be listed in the New York Stock Exchange. Through subsidiaries and associates companies, Tata motors has operation in the UK, South korea, Thailand and spain. The company is the worlds fourth largest truck manufacturer and the worlds second largest Bus manufacturer. The companys 23000 employees are guided by vision to be best in the manner in which we operate best in products it deliver ,and the best in our value system and ethics. It has auto manufacturing plants in Jamshedpur, Pantnagar, Lucknow and Thailand. It is expanding its International footprints establish through exports since 1961.The companys commercial and passenger vehicles are already being marketed in several countries in Europe ,Africa, The middle East ,South East Asia ,South Asia and South America. It has frainchsee/ joint venture assembly operations in Kenya, Bangladesh, Ukraine , Russia and Senegal.

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 The foundation of the companys growth over the last 50 years is a deep understanding the economic stimuli and customer needs and the ability to translate them into customer desired offerings through through leading edge R&D. With over 2,000 engineers and scientists ,the company engineering research center, established in 1966, has enabled pioneering technologies and products. The years to come will see the introduction of several other innovative vehicles, all rooted in emerging customer needs. R&D is also focusing on environment friendly technologies in emissions and alternative fuels. Reason Behind Starting the Company

Company expanded its operations to commercial vehicle in 1954 after forming a joint venture with Daimler-Benz AG of Germany. Despite the success of its commercial vehicles ,Tata realized that his company has to diversify and he began to look at other products. Based on consumer demand, he decided that building a small car would be the most practical new venture. So in 1998 it launched Tata Indica.Indias first fully indigenous passenger car.and it became instant hit in the market. And journey of Tata motors is continue since then. .

ABOUT THE CAR

TATA Nano is a city car launched by Indias TATA motors at the 9th annual Auto Expo in January 2008. It is being touted as the Peoples Car as it is projected to be the least expensive production car in the world. The car will come in different versions, including one standard and two deluxe variants. The deluxe version will have air conditioning, but no power steering. The car is expected to be produced in the Sanand plant in Gujarat, which is under construction.

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The Tata Commitment

At the Tata Group we are committed to improving the quality of life of the communities we serve. We do this by striving for leadership and global competitiveness in the business sectors in which we operate. Our practice of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. We are committed to protecting this heritage of leadership with trust through the manner in which we conduct our business.

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INDUSTRY OVERVIEW

In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014. Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. Indian auto industry, is expected to grow at a CAGR of 9.5% amounting to Rs. 13,008 million by 2010. It has become a hot destination for global auto players like Volvo, General Motors and Ford with nearly all major manufacturers looking to launch or having already launched a small car.

A well developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian economy. Today Indian automotive industry is fully capable of producing various kinds of vehicles and can be divided into 3 broad categories: Cars Two-wheelers Heavy vehicles

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The Commercial Vehicle Segment has been contributing to the automobile market to a great extent. Many foreign companies have been investing in the Indian Automobile Market in various ways such as technology transfers, joint ventures, strategic alliances, exports, and financial collaborations. The auto market in India can boast of attractive finance schemes, increasing purchasing power, and launch of the latest products.

The modern automobile market in India has been considering key issues in the process of growth:

Customer care, and not just 'service' Domestic as well as multinational investments Searing through cut-throat competition Road safety Anti-pollution norms Coordination with the government to enable advancement Used vehicle trade

Given the potential of Indias automotive market, its worth taking a closer look at its structure. The future of the Indian market is in the hands of nine automakers, which command 98% of the total market. The Indian Big ThreeMaruti, TATA and Mahindra & Mahindraboasted a combined market share of 55% in 2006 and are capable of designing, developing and producing indigenous vehicles. Of the global OEMs, Hyundai has the outright lead with an 18% market share. Hot on Hyundais heels is fast-growing Toyota.

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CAR MARKET IN INDIA

Over the last few decades, the car market in India has been in a burgeoning stage with all types of cars flooding the market in order to meet the demands of Indian customers who are increasingly exposed to state-of-the-world automobiles and want the best when it comes to purchasing a car. India has emerged as one of the major bases for manufacturing small passenger cars. At In the recent years, India has emerged as one of the major bases for manufacturing small passenger cars. At present the Indian automotive industry boasts of being the 3 rd largest manufacturer of small cars.

It is expected that by 2030, the Indian car market will be the 3rd largest car market across the globe. Small cars seem to be ruling the roost in the Indian automobile market with over 7.5 lakh small cars being sold in India in 2007-08. The main encouraging factors for the success story of the car market in India are : The increase in the opportunity for new investments The rise in the GDP rate The growing per capita income Massive population and High ownership capacity

The liberalization policies followed by the Indian government had been inviting foreign investors and manufacturers to participate in the car market in India. The recent trend seen

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along with the rise in the income level from new areas like software, IT and ITES including BPO, Media and Mass Communication has led to early financial independence in the new generation bringing with it a change in the lifestyle which has further led to the increase in the demand for different varieties of cars among them. Moreover, there are many financing companies providing easy car loans at reasonable interest rates and affordable installments.

The car Market in India is crowded with all varieties of car models like the small cars, midsize cars, luxury cars, super luxury cars, and sports utility vehicles. Initially the most popular car model dominating the Car Market in India was the Ambassador, which however today gave way to numerous new models like Maruti, Fiat, Hyundai, BMW, and many others. Moreover, there are many other models of cars in the pipeline, to be launched in the car market in India.

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COMPETITIVE PROFILING

TATA Nano has been launched as a bridge between the automobile market and the two wheeler market. TATA identified a latent need and converted it into a product. Creating a niche of its own Nano does not directly compete with either the lower end of the car market in India or the two wheeler. However, it is certain that its impact will still be felt on both segments. Within the Automobile Market, its main rivals are :

Maruti 800 - The Nano has 21% more interior space and an 8% smaller exterior, when compared with its closest rival, the Maruti 800 which sells at around Rs. 2 lakhs in the market.

Maruti Alto Another Small Car masterpiece from Maruti, the Alto is destined to take over the 800s mantle some day. Infact Maruti has laid stress on Alto while relegating 800 to the background, and it was a calculated move to gradually phase out Maruti 800.

Other than these the following are more expensive an even though in the Hatchback segment, they do not wish to be a part of the lower end segment of the car market.

Zen Estilo This is a slightly more upscale variant in the small car segment

Chevrolet Spark This is a redo of the Daewoo Matiz, a hit in India from a few years ago 18

Maruti Wagon R Fiat Palio Getz Hyundai Santro Hyundai i-10 Swift

Its main competitor s still pitched to be the Two Wheeler Market - The family two-wheeler, which is in the range of 75-125cc, costs Rs. 35,000-50,000. This segment accounts for 92% of the two-wheeler market in terms of sales. With the launch of Nano, the spillover will happen from this two-wheeler market to Nano. Two-wheeler manufacturers have realized it and Bajaj Auto and Hero Honda are making plans to enter into this new segment. Bajaj Auto is already in talks with Renault and Nissan to come out with a car of similar price by 2010. Another auto major, Peugeot Motor Company from UK, is also planning to try the small car market in India by 2011. It is coming to India with a spacious five seater car, which is designed especially to cater the whopping small car consumers of India.

However Maruti Suzuki still dominates the small car segment in India with 60% share. Maruti 800 has been the essential small car with a price tag of Rs. 2 lakh and all aspiring car buyers have preferred it as their first car. Today, that may change to a certain extent. But this will in no way harm Maruti Suzuki or Hyundai Santro as owning a car is still aspirational and anyone who wanted to buy a car above the 3,400 mm series will continue to do so.

The launch of Nano creates a market for the small car which may allow competitors to enter this market with new models but should not harm their existing strategies. 19

At most, Maruti may want to launch an exchange offer for 800 and give an attractive price for 800 buyers to migrate to Alto. They should then refurbish and put these used 800s in the market for Rs. 70,000. This should act to lower some of the velocity that Nano is expected to pick up.

Competitors

Bajaj Auto
Bajaj Auto-Renault-Nissan ULC (no prototype has yet been presented) Bajaj Auto says its $2,500 car, which it is building with Renault and Nissan Motor, will aim at a fuel-efficiency of 30 km/litre, or twice an average small car, and carbon dioxide emissions of 100 gm/km. The Bajaj venture will have an initial capacity of 400,000 units, while Tata expects Eventual demand of 1 million Nanos. Others Rival car makers including Fiat, General Motors, Ford Motor, Hyundai and Toyota Motor have all expressed interest in building a small car that is affordable to more middle-class consumers in emerging markets. The bulk of demand there is for small cars because people are much more sensitive to fuel prices. Honda and Toyota are leading the way on so called cleaner gasoline-electric hybrids, and Some environmentalists argue getting prices down on these technologies is where efforts Should be concentrated. Inexpensive and eco-friendly electric-cars like Tara Tiny, Oreva Super (both reportedly Even cheaper than Tata Nano) and REVA pose even more significant danger to Nano.

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Threat of Competition from China

China could throw up a challenger to the Nano, with a similarly rock-bottom price. Unlike India, which has struggled with a rising rupee against the dollar over the past year, Chinas artificially suppressed currency will make export markets easier to tap. Already there are several automobile parts suppliers in China specializing in small cars.

Strong competition to Used Car Market

Indias used car market is taking a dive ahead of the Nano's arrival. Sales for India's current most popular and cheapest car, a used Maruti 800, have already fallen 30%, and sales for a brand new Maruti 800 are down 20% in November 2008. At nearly 2,00,000 rupees, it's about twice as much to buy new as the $2,500 Tata Nano will be, despite being a smaller car. Indian car buyers are of the view - why buy a new or used car today when you can wait until the end of the year and get a new Tata Nano for much less? The used car market in India could rebound a bit, however, after the Nano debuts.

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CORE VALUES
The five core tata values underpinning the way it do business are :

INTEGRITY: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny.

UNDERSTANDING: We must be caring, show respect, compassain and humanity for our colleagues and customers around the world and always work for the benefit of the communities we serve.

EXCELLENCE: We must constantly strive to achieve the highest possible standards in our day to day work and in the quality of the goods and services company provides.

UNITY: We must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance understanding and mutual cooperation.

RESPONSIBILITY: We must continue to be responsible, sensitive to the countries , communities and environment in which we work,always ensuring that what comes from the people goes back to the people many times.

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JOINT VENTURES, SUBSIDARY AND ASSOCIATE COMPANIES Tata motors has several joint venture, subsidiary and associates companies:
Jaguar Land Rover Tata technologies Ltd. ( TTL ) and its subsidiaries Telco construction equipment Co. Ltd. ( Telcon ) HV Axcels Ltd.(HVAL) HV transmissions Ltd.(HVTL) TAL manufacturing solution Ltd.(TAL) Sheba properties Ltd. (Sheba) Concorde Motors (India) Ltd.(Concorde) Tata Daewoo commercial vehicle Company Ltd. Hispano Carrocera Tata motors insurance Services Ltd.(TMISL) Tata motors European technical Centre plc Tata motors finance Ltd. Tata motors Thailand

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COMPANY VISION AND MISSION

VISION To be world class corporate constantly furthering the interest of all its stakeholders.

VISION

CORE VALUES

MISSION

CORE VALUES Integrity Understanding Excellence unity Responsibility

MISSION Shareholders To consistently create shareholder value by generating returns in excess of weighted Average Cost of Capital during the upturn and at least equal to weighted average cost of capital during the downturn of the business cycle. Customers To strengthen the Tata brand and create lasting relationships with the customers Employees Promotes innovation, excellence and the Tata core values. Vendor and channel Partners To Foster Long term relationship so as to introduce a broad range of innovative products and services Community To Proactively Participate in reshaping the countrys economic growth

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POLICIES OF COMPANY

1. Quality Policy 2. Environmental Policy 3. Policy on Human Rights 4. Policy on Advertising 5. Policy on Bribery and Corruption 6. Whistle blower Policy 7. Policy on Sexual Harassment 8. Policy on Equal Opportunity 9. Policy on Consumer Privacy 10. Policy on Gifts 11. Perquisite Car Policy 12. Travel Policy 13. Internal Job Posting Policy 14. Medical Scheme 15. Mobile Phone Policy 16. Loan Policy 17. Educational Assistance Policy 18. Occupational Health and Safety Policy 19. Information Policy

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MARKETING STRATEGIES

Market Busting Moves by Tata Motors : As Indias largest automobile manufacturer, Tata Motors entered the market and Maintains its position using the following Market Busting Moves: a. Cost cutting innovative technique b. Improving customers quality c. Maintaining customer relation.

a) Cost Cutting:

To cut costs, Tata Motors tried innovative technique such as zero-based costing. The companys engineers re-worked the cost of component all over again. For example, earlier, tata Motors paid for its forged components on a cost-plus basis as claimed by a vendor. Under the new system, it paid a price depending on the weight of the forging, leading to saving of 25%

b)Improving Customers Quality

Apart from providing its customers with high performance automobiles, Tata Motors Strongly believes in customer safety. Several cases have been cited where passengers driving Tata vehicles have been saved after terrible accidents. Tata Motors established a crash-testing Facility, the only one of its kind in the country, in Pune in 1996. The small workforce of 21 members including engineers aims to control the serious risks and intrusions in accidents.

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The company believes that this factor has been vital to the success of the Indica and other products under the companys passenger car unit. There are two complimentary aspects of crash testing: simulation, through powerful computers and sophisticated software, and the physical crashing of vehicles, at the prototyping stage. The idea is to use every part of the vehicle in some way to save the occupant rather than the vehicle". After using advanced software and finite element analysis to sketch various scenarios and possible outcomes, a physical test is performed. The car is run at high-speeds into barriers of steel and concrete monitored by high-speed cameras taking about 1000 frames per second. Two crash-test dummies seated inside (Rs. 90lakh each) are wired to about 50 sensors with an additional 30 sensors in the car to record and monitor every element of the crash.9 Through years of experience, reported cases and the vast amount of resources expended by Tata Motors, they make sure that their customers are safe when driving their vehicles.

c) Maintaining Customer Relations:

The recent rains this month in Mumbai had caused heavy damage throughout the region. The heavy rains turned into floods taking away peoples homes, cars and led to the loss of other public and private property. The frustrated customers have been helped by a bold move by the management of Tata Motors in wake of the rain damage. Tata has instructed all its dealers and service centers to offer a 25% discount on spare parts, labor charges, oil changes, rust treatment and up to 50% for Tata-branded audio and car security systems.11 The company has also asked centers to swiftly mobilize parts, provide prompt service and keep stores open for extended hours. Their comprehensive repair and relief support for owners of Tata vehicles has helped them further strengthen their customer relations and show that they care.

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 Market penetration strategy Attract competitors customer

A) Launch Indias first campaign against competitors. B) Highlight value for money. C) Good and wide spread service network.

Convert non user into user: Special schemes for youth and middle income group like
zero down payments, low interest rate or a lower EMI.

Market development
Geographically: Launch in major emerging economies like Brazil, Russia, etc.

Product development
Quality improvement: Improve power and pick up. Better and comfortable interiors.

New product development:

Develop LPG and CNG versions for petrol versions. New technologies like hybrid and electric versions.

Feature addition:
Smart security system. GPS. Parking assistant. Rear wash wipers.

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 Product line extension: Launch new model with more boot space and leg room. Diversification Car insurance. Car finance. Consultancy services on R&D. Integrative Growth

Forward integration:
Open its exclusive showrooms and dealerships.

Backward integration:
Entering manufacturing of key auto ancillaries.

Horizontal integration:
May acquire automobile R&D firm. Overseas acquisition.

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LIFE CYCLE OF TATA MOTORS

YEARS MAR2006 MAR2007 FEB2008 NOV2009 SEP2010

SALES (Cr.) 45,114 53,707 54,181 54,188 65,938

SALES in Cr.
70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 MAR'2006 MAR'2007 JAN'2008 NOV'2009 SEP'2010 SALES in Cr.

COMPANY FINANCIAL STATEMENT

According to companys financial statement we have drawn the LC (life cycle) of Tata Motors According to our research at present Tata Motors is in its Growth stage.

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PRODUCTS PRODUCED

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SWOT ANALYSIS

STRENGTH:

Strong Presence in the Marketplace:- Tata Motors is the only company in India with a broad based presence across the industry, in all segments of the commercial vehicles market heavy and medium commercial vehicles, light commercial vehicles, pick-ups, sub one-tonne mini-trucks - and key segments - compact, midsize car and utility vehicle segments - of the passenger vehicles market. Unique Understanding of Customer Need: - With 50 years presence in the automotive business, Tata Motors understands customer needs and develops products that meet their Needs. To consider a few examples, as early as 1980s, the company launched Light Commercial Vehicles, amidst Japanese competition, in which it today strongly leads. In the 1990s, Anticipating the need for an affordable family car, it launched the now famous Tat Indica, which occupies a leading position among compact cars. Skill Base Developed over the Last 40 Years:-Tata Motors is also very well-placed on technology capability. The company had set up its Engineering Research Centre as early as 1966.With 1400 scientists and engineers and state-of-the-art development, testing and validation facilities, it is this technology capability which has, allowed Tata Motors, over the decades, to offer indigenously developed products. This strength has been accentuated, with the inclusion of TMETC, TDCV and Hispano Carrocera in the R&D network, besides several other specialist external agencies. The company no longer needs to develop every necessity itself. Today it just has to manage the process of product creation, drawing upon already available R&D and skills from different sources.

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Human capital: - The Companys key strength is its people. The over 22,000 employees comprise a very broad talent base, with the required skills in every aspect of the industry. With increasing international initiatives by the company, this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost. The company will achieve this by developing and marketing relevant products, on its existing platforms and new ones, which delight consumers in every market they are introduced in. Tata Motors linkages in Europe through Subsidiary Companies: - In October 2005, Tata Technologies Ltd, a 100 per cent subsidiary of Tata Motors, acquired a 94.3 per cent stake in INCAT International Limited. INCAT is a supplier of engineering & design, product lifecycle management and product-centric IT services to the automotive, aerospace and durable goods industries. Tata Motors R&D in Europe: - Deepening its engagement with the European R&D space, in September 2005, Tata Motors set up the Tata Motors European Technical Centre, a 100 per cent subsidiary, in the UK. It is engaged in design engineering and development of products for the automotive industry. Working synergistically, TMETC provides the company with design engineering support and development services, complementing and strengthening the companys skill sets and providing European standards of delivery to the companys passenger vehicles. The internationalization strategy so far has been to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product 'right first time.'

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OPPORTUNITIES:

Indias huge geographic spread-This is one aspect where the company is looking for and its diversified range of cars suits very much this area of car or say auto industry in country. Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country. Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days. Increasing Road Development, Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand. Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so, the development of rural infrastructure and condition will create handsome demand from the rural area. Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon. Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so, this is also very good opportunity for this sector. Graduating from Two wheeler to four wheeler-The dream of NANO will boost demand for four wheeler in the auto industry.

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THREAT:

Indian is lacking in proper infrastructure this is slowing the pace of growth of auto industry Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss. High competition from foreign players-As the giants like GM, Audi, MERC etc are trying to capture the high segment market it is one of the very effective threat to the company. Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production. Sustainability and environmentalism could mean extra costs for this low-cost producer. This could impact its underpinning competitive advantage. Obviously, as Tata globalizes and buys into other brands this problem could be alleviated. Since the company has focused upon the commercial and small vehicle segments, it has left itself open to competition from overseas companies for the emerging Indian luxury segments. For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian market include Ford, Honda and Toyota. In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra, Maruti Udyog, General Motors, Ford and others. Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminium is increasing putting pressure on the costs of production. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market.

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WEAKNESS:

The current financial situation of its recently acquired firms like Corus and Land Rover-Jaguar is very big headache for the company and it should be back to the track in the near future. The high ratio of debt equity ratio is also weakness of the company. The small car segment is still not good for the company due to maruti-suzuki so, it need to tap this section also. The CV segment is becoming highly competitive by new player like Volvo,and rival M &M are coming with new products to cater the TATA in the market as the rural area has given thumps up to M&M during this year. The company's passenger car products are based upon 3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers. Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has not got a foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India? One weakness which is often not recognized is that in English the word 'tat' means rubbish. Would the brand sensitive British consumer ever buy into such a brand? May be not, but they would buy into Fiat, Jaguar and Land Rover.

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NATIONAL AND INTERNATIONAL IMAGE

Tata Motors has been aggressively acquiring foreign brands to increase its global presence. Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. Tata Motors has also acquired from Ford the rights to three other brand names: Daimler, Lanchester and Rover. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Koreas second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, giving it controlling rights of the company. Hispanos presence is being expanded in other markets. On Tata's journey to make an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus) as well as trucks (Novus). These models were jointly developed with its subsidiaries Tata Daewoo and Hispano Carrocera. In May, 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo. They will debut in South Korea, South Africa, the SAARC countries and the Middle-East by the end of 2009. In 2006, it formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. Tata Motors has expanded its production and assembly operations to 38

several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe. Tata also franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4 continents. Though Tata is present in many counties it has only managed to create a large consumer base in the Indian Subcontinent namely India, Bangladesh, Bhutan, Sri Lanka and Nepal and has a growing consumer base in Italy, Spain and South Africa.

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OBJECTIVES

To analysis the consumer behavior towards the brand image of Tata Nano.

To determine the degree of satisfaction level of consumer with the service and product line Special aspects buyers are looking forward to in Nano.

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HYPOTHESIS

Ho: The consumers perceive TATA Nano as a beneficial car and positive consumer Behavior are towards the brand Image of Tata Nano.

H1: The consumers do not perceive TATA Nano as a beneficial car and consumer Behavior is not positive towards the brand image of Tata Nano.

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LITERATURE REVIEW

Brand perception of Tata Nano

A brand is defined as a specific name, symbol or design- or, more usually some combination of these- that is used to distinguish a particular sellers product. In Tata Nano case, the branding strategy used is corporate name combined with individual product names. Tata Nano was one of the longest awaited and most talked about automobile debut in India (Farris et al, 2009). Tata Nano was launched in Mumbai on March 23, 2009. The car was priced of at Rs.1, 30,000 approximately. Assert that brand awareness is a major component of brand knowledge that is reflected by a consumers ability to identify a brand under different conditions and is related to the strength of the brand node or trace in memory. Consumers tend to generalize their attitudes and opinions across products from a given country, based on their familiarity and background with the country, and their own personal experiences of product attributes such as technological superiority, Product quality, design, value for money, status and esteem, and credibility Of country-of-origin of a brand (Kinra, 2006). Tata Motors has been aggressively acquiring foreign brands to increase its global presence. Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. Tata Motors has also acquired from Ford the rights to three other brand names: Lanchester and Rover. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Koreas second largest truck maker (walker, 1995).

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Consumer brand knowledge Determines how a consumer thinks about a brand. It also determines how the Consumer responds to different stimuli regarding a brand (Lim and OCass, 2001). Consumer behavior is the field of study that focuses on consumer activities. It should be primary focus of every aspect of the firm's marketing program. Consumption is a key to understand why consumers buy products. From branding his livestock, early man Moved on to branding his wares- where a potter for example would identify his pots Brand name is a key indicator to quality (Rao and Monroe, 1989). And a global image can arguably enhance the brands perceived. According to (Kapferer, 1997), perceived quality is defined as a consumers evaluation of a brands overall excellence based on intrinsic (e.g., performance, durability) and extrinsic cues (e.g., brand name, warranty). Global brands often advertise their worldwide availability and acceptance (Alden et al., 1999). The Nano was unveiled at the 2008 New Delhi Auto Expo Industry convention was that a reliable car couldn't be made at such a low price, so initial media speculation was that the car would be a simple four-wheeled auto rickshaw. However, TATA Motors surprised everyone with the understated elegance of the car, especially considering the size and cost involved. The Tata Motors has been aggressively acquiring foreign brands to increase its global presence. Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. Tata Motors has also acquired from Ford the rights to three other brand names: Lanchester and Rover. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Koreas second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. (World Bank president Robert Zoellick, 1998).Tata Nano with a diesel engine will be rolled out in August or

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September, vendor sources said. The diesel Nano could be crucial to the turnaround of the Nano brand which has taken a beating in the recent months due to poor sales, price increase and some safety concerns. "The diesel engine will be in the 600-700 cc range like the petrol version and could be priced at a slight premium over the current variants," said the vendor source. (Nandini Sen Gupta, 2011). India's indigenous people's car, the Tata Nano, is the 2009 Economic Times ZigWheels Car of the Year. Facing competition from other spanking new and larger cars (including the Mahindra Xylo, Fiat Grande Punto, Toyota Fortuner and the Mercedes-Benz E-class), the Tata Nano came out on top not only for its revolutionary rethinking of design, but also for its relevance to India. (Adil Jal Darukhanawala, 2009). World Bank president Robert Zoellick has expressed his fascination for the world's cheapest car the Tata Nano, even as he cited infrastructure as the major bottleneck for the country's growth. "I got into the car. I tried the back seats and the front seats, saw the engine. That's a very impressive product," he said about his encounter with the world's cheapest car at road transport and highways minister Kamal Nath's house here. (Robert zoellick, 2009). The Tata Nano looks set to to retain its crown of being India's cheapest car. A potential rival to the car, from the alliance of Bajaj-Renault-Nissan, appears to have run into rough weather with rising differences between the Indian partner and the western car companies led by Carlos Ghosn . Renault recently sounded non-committal on its engagement and said it may back out of the project if the car -- conceptualised, designed. (Pankaj Doval, 2011).

Tata is one of the oldest companies fighting to establish its position in small car segment. RESOURCES AND CONSTRAINTS Tata has wide resources in terms of infrastructure and money. But the rising price of steel in the world market is major concern. OBJECTIVE Tata want to become no: 1 in automobile industry (both small and large) and want to provide everyone with an affordable car of their dream. General Perception of brand TATA in small car segment affects the sale? Marketing research problem: - 1. As price of Nano is 44

around one lakh rupees, possibility of car being used as taxi cannot be avoided. 2. Time to convert raw material into Nano 3. Determining the trends in steel, rubber and other raw material prices 4. The focus of India in building infrastructure and spending trends 5. They thought that they are cheated by the government. 6. Tata is known for heavy commercial vehicle. This common Conversion of NANO to aperception can affect the sale of Nano. (Abhishek Tewari, 2008).Th e co m p an y i s t he wo rl d s fou rt h l a r ge st t ru c k manufacturer, and the worlds second largest bus manufacturer. In March 2008, Tata Motors acquired Fords UK based car brands Jaguar and Land Rover (BBC News, 2008). Tata Motors strategy has been different compared to Ford Motors. They defeated their rivals by capturing the opportunities much ahead of competition even before they are prepared to deliver against orders. Their strategy has been to reserve customers by charging booking amounts such that they first secure the customer base and then start manufacturing. They are very cost conscious about overheads or extra inventory and hence manufacture strictly against orders. Their strategy in the launch of Tata Nano is the same whereby they first intend to secure the customers by charging nominal booking amounts and then deliver the cars gradually as and when they are launched. Given that their Nano concept is not yet challenged by any competition, it would be easier for them to reserve the bookings such that even if they face a competition, their customers of first lot will remain untouched. (MotorTorque.com UK. 2009).

They have largely been able to control the bargaining power of suppliers by virtue of excellent supply chain management in the backend and hence are able to offer unbelievable prices to their customers not letting any room for them to bargain. Currently, Tata Motors are facing some barriers to their entry in many markets like the emission norms of European Union but they are gradually working on the remedies without comprising much on their local cost advantages. (Fogarty, Justin, 2009). 45

Consumer behavior is the field of study that focuses on consumer activities. It should be primary focus of every aspect of the firm's marketing program. Consumption is a key to understand why consumers buy products (Blackwell et al., 2007). In this study, analysis has been made to judge the perception of individuals towards Tata Nano after its launch. The small car market in India is increasing at a great pace. The main players in the small car market like Tata Motors and Maruti Udyog are competing fiercely. All the small car manufacturers are trying to outdo each other in terms of design, innovation, pricing, technology, etc., in order to increase their market share. There is a healthy competition in the Indian small car market which has intensified since the Indian government decided to boost the small car sector. Due to this reason, excise duties have also been reduced. Demand for small cars has increased due to aspiration lifestyle of people which makes them strive to purchase a car early in life. Moreover these cars are more affordable and utilitarian. Tata Nano was one of the longest awaited and most talked about automobile debut in India (Farris et al., 2009). Tata Nano was launched in Mumbai on March 23, 2009. The car was priced of at Rs. 130,000 approximately. Tata Nano is an engineering marvel to come out of India in terms of cost efficiency, fuel efficiency and space efficiency. To target the specific segment and also to tap bottom of pyramid, Tata Motors has entered into agreements with 15 preferred banks/NBFCs for the Tata Nano booking loan product. The preferred financial institutions are-State Bank of India, Tata Motor Finance, State Bank of Patiala, ICICI Bank, State Bank of Travancore, State Bank of Mysore, State Bank of Hyderabad, State Bank of Bikaner and Jaipur, State Bank of Indore, Axis Bank, Punjab National Bank, Federal Bank, Corporation Bank, Indian Bank and the Central Bank of India.(Goyal and Aggarwal (2008).

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The Nano is constructed of components that can be built and shipped separately to Be assembled in a variety of locations. In effect, the Nano is being sold in kits that are distributed, assembled, and serviced by local entrepreneurs. As Ratan Tata, chairman of the Tata group of companies, observed in an interview with The Times of London: "A bunch of entrepreneurs could establish an assembly Operation and Tata Motors would train their people, would oversee their quality assurance and they would become satellite assembly operations for us. So we would create entrepreneurs across the country that would produce the car. We would produce the mass items and ship it to them as kits. That is my idea of Dispersing wealth. The service person would be like an insurance agent who would be trained, have a cell phone and scooter and would be assigned to a set of Customers." In fact, Tata envisions going even further, providing the tools for local Mechanics to assemble the car in existing auto shops or even in new garages Created to cater to remote rural customers. With the exception of Manjeet Kripalani, BusinessWeeks India bureau chief, few have focused on this Break through element of the Nano innovation (BusinessWeek.com, 1/10/08). As of 11 December 2008, Tata Motors has not yet announced any release-date for the Nano and the future of the car remains uncertain, with some sources expecting it to be released in 2008 and others in 2009]. Currently, no orders for the car are being taken but it has been announced that Nano will be finally manufactured in Sanand and Pantnagar. Some sources expect Nano's electric- and gasoline-variants to be released in 2008], and the diesel-variant in late or mid-2009, though both dates remain uncertain due to lack of any official announcement.

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 This raises the question: How have the Tatas accomplished such a task? Pursuing this question a fascinating story unfolds that reminds one of Henry Ford's Model T that was built exactly one hundred years ago (September 1908). Ford wanted to make a car for the multitude, not for the elite, with the best material and the best design that the technology of his time could devise, (Times of India mentioned, 2005)

And he wanted to make it, above all, at a price that was affordable. This is the example that Ratan Tata has followed with determination. When he announced the price of his car in an interview to the Financial Times during the Geneva Motor Show, his colleagues were 'aghast', but he had set his goal. The Hindu quoted European Commissions Director General for Energy and Transport. I can say that alike other nations; entire Europe is also eagerly awaiting the commercial launch of Nano. But keeping in mind the adverse impact of carbon dioxide (CO2) on environment, it would be advisable to have Nanos electric version. I hope Tata (Ratan) is working on it. (Matthias Ruete, 2008)

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RESEARCH METHODOLOGY

Research is a common parlance refers to a search for knowledge. One can also define Research as a scientific and systematic search for potential information on a specific topic. The Advanced Dictionary of Current English lays dome the meaning of research as: a careful investigation or inquiry specially through search for new facts in any branch of knowledge.

SOURCES OF DATA COLLECTION:

Types of Data:

Primary Data-Primary data are first hand information which one can get directly from the people working in that particular concern such as , questionnaires QUESTIONNAIRE METHOD:

Primary data was collected by the method of distributing questionnaire of brand perception of tata nano and there after analyzing and evaluating the feedback forms.

Secondary Data-Secondary data is the information about the facts that one can get from the published materials such as books, journals , magazines etc.

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PAST RECORDS: The secondary data was collected by the helped of published data provided by the personal department of the company about the brand perception on purchase intention of Tata Nano.

Research Design

Our objective is to study the brand perception of Tata Nano. In my research we using research design as Descriptive Research because it Is a fact finding investigation which is aimed at describing the characteristics of individual, situation or a group (or) describing the state of affairs as it exists at present.

Sampling Method

Convenience sampling method has been used because the selection of units from the population has been done based on easy availability or accessibility. The Survey has been conducted amongst people between the ages of 18-26 so as to cover a reasonable cross section of the people who fall into the target group.

Sample Size

100 people consisting for the sample. The sample involves people from various backgrounds such as students.

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FINDINGS

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1) Does any brand name affect your buying behavior?

28%
Yes No

72%

Most of the people says that the brand name affect his/her buying behavior. Because in the todays scenario most of the people buy the branded products according to his/her life style.

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2) Does price affect what you buy?

42%
Yes No

58%

Most of the respondent says that the price affect on his/her buying behavior.

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3) Will you stick to the same product if their price is increased (and you are a loyal Customer to the product)?

70 60 50 40

58%

30%
30 20 10 0

12%

Up to a certain limit

Yes

No

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4 ) . D o yo u t h i n k N A N O i s a p e o p l e s c a r ?

13% 37% 50%

Yes No Can't say

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Correlation according to the gender wise

Male Yes 30 No 24 Cant 6 Say

Female 20 13 7

dx 10 4 -14

dy +6.67 .67 -6.33

dx 100 16 196

dy 44.48 .4489 40.06 158 162.838

dxdy 66.7 2.68 88.62

dxdy = 158 = dx.dy 26516.5368 = .95

There is a perfect positive correlation.

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5).If the prices of NANO increase, would you still purchase it?

42%

32%
Yes No Can't say

26%

Most of the respondents believe that the rise in the price of raw material will lead to a increase in the price of the car while few peoples believes in Ratan Tatas statement that promise is a promise.

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6) What do you think are the features that attract you to NANO ?

50 40 30 20 10 0

44% 35% 9%
Value for money Easy to drive

12%

Brand name of tata

Design

Value for Money is the feature that most people and prospective ones are hoping from TATA Nano. Its features like Fuel Efficiency, Optional Air conditioning, Rear engine in the given price make it a good Value for Money investment. Another important reason for people to buy the Nano will be because of the TATA brand name. With Nano consumers are hoping for even better and bigger success for TATA that was seen in the past for Indica (diesel version).

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7) - Do you agree with the fact that NANO will cause traffic hold up in the city?

50 45 40 35 30 25 20 15 10 5 0 Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree

44%

17%

20% 16%

3%

About 44% of the respondents agree and 37.6% of the respondents strongly agree that the launch of a car like TATA Nano will result in increased traffic on the roads of the country

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8)

Do you agree that TATAs brand name will have an effect on NANOs purchase?

45 40 35 30 25 20 15 10 5 0 Strongly disagree Disagree Neither agree nor disagree

40%

30%

12% 5%
Agree

13%

Strongly agree

Majority of the respondent believe that the brand name Tata carries a good image in the market while others believe that Tata is not successful in small car segment which might affect the brand name to an extent. Respondents believe that TATAs brand name will have an impact on the sales of Nano. Only time will tell by how much would this brand name be able to awing the response in TATAs favor.

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Do you agree to companys claims that it is a safe car?

45 40 35 30 25 20 15 10 5 0

18% 5%

21%

44% 12%

Strongly Disagree Neither disagree agree nor disagree

Agree

Strongly agree

Most of the respondent agrees companys claims that it is a safe car.

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10. Do you think a low cost car like NANO will lead to a huge addition in pollution?

25%

75%

Yes No

Majority of respondent says that a low cost car like nano will lead to a huge addition in pollution.

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CONCLUSION
According to the results, Tata Nano has a strong brand awareness and excellent relationship quality, so that customers are willing to maintain long-term relations and are willing to buy again and recommend. Brand perception and relationship quality are direct and positive effect on purchase intention. Effect of brand perception through relationship quality on purchase intention has upgrade effect. To enhance Tata Nano relationship quality, also can enhance the consumer's willingness to buy, including the repurchase or recommendation.

The perception of people towards Tata Nano after its launch has been worked out with the help of questionnaire. The results of factor analysis revealed that motivational variables like enhancement of social status, low maintenance cost, etc., motivates a potential customer to purchase this car.

Some persons were disappointed with the working of this car as they considered it risky. They think that Tata Nano is more accident prone as it's a very small car and moreover there were some reports regarding bursting of its rear engine in case of rear collision. There is a huge waiting list for the purchase of this car and more over it is uncomfortable due to less boot space.

There is a performance problem as its pick up is very low and engine is less powerful. It is not suitable to drive on highways as its highest speed limit is only 80 km/h adding to dissatisfaction in customers.

It is a less expensive car when compared to other cars. Therefore even low income group can buy it leading to high congestion on roads and adding to parking problems.

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Promotional strategies also tempted potential customers to buy it. Its brand ambassador being Ratan Tata himself really helped it in increasing its sales. Dealer's image also affects customers' decisions adding to high sales of Tata Nano.

Some of the customers of Tata Nano were dissatisfied with the car due to bad after-sales service and moreover its noisy engine disturbs the customer. At last, it is recommended that Tata Nano is really a people's car but company needs to work more on its features and safety and enhance its production so that people don't have to wait to purchase it.

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RECOMMENDATIONS

Brand perception is a direct antecedent of relationship quality, and subsequently will influence purchase intention. So Tata motors could propose relevant measures of relationship quality, such as: customization, CRM (customer relationship management) database building, customer feedback form and other diversified services to enhance customer trust and satisfaction, with the strengthening of relationship quality to upgrade consumer's purchase intention. Although the use of filtering repeat respondents and note some important things before they answer questions, Internet users will still be limited, the consumers are not included that they don't use Internet. Results more difficult to infer to the population, and the Internet respondent were voluntary. Internet survey can't effectively control the number of valid questionnaires and the number of respondents. Recommended others, follow-up investigation by internet should pay attention to detail.

Other notable trends that have emerged are:

As income increases, importance of mileage as a significant factor decreases As income increases, price of the car becomes less and less important As income increases, resale value of the car loses its relevance as the deciding factor

Cars looks are significantly important for people up to 35 years of age. So, car looks & age are highly related Most people buy cars: At Festival Times To celebrate Family Occasions e.g. Birthdays and Anniversaries 65

At times of Special Discounts and Offers To replace an old car

Most people believed that TATA Nano will be sold in huge numbers when introduced in the market. The prime reason for this performance will be its low price, TATAs brand name and the fact that inspire of low price the car is a good looking model. Target Market for TATA Nano will not be specific. The car is expected to be equally popular in Semi Urban and Urban areas. This is because traffic is congested in Metros and big cities and it is easier to maneuver smaller cars. Those who already have smaller cars as their first cars will restrain from purchasing TATA. Most people surveyed were of the view that the introduction of cars like Nano will certainly increase the traffic on roads and more traffic will lead to more pollution. People surveyed said that to avoid this situation we need to improve the public transport system but they also said that they would buy it irrespective of this fact. Target Market will be equally divided between Male and Female population. The profile of those who purchase Nano is more likely to be : Any first time purchaser of a car (including Low income Groups Lower Middle Class) Young College going population for commuting purposes

An interesting observation here is that TATA Nano even though a new concept in itself and inspite of being introduced as the worlds cheapest car will still be judged by consumers on all the same parameters they are used to evaluate the performance of other cars. Infact the factors remain the same for two wheeler owners and Car owners Value for Money, Affordability, Fuel Efficiency, Safety. The price will certainly help in initial conversions and TATA will benefit from the revenues on volume basis more but to sustain in the market

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TATA Nano will have to perform like any other car especially more on security considering it is smaller than even Maruti 800 on the outside.

TATA has exposed an entire new market and if it proves profitable (going by performance and sales figures of first six months), TATA will suddenly face tremendous competition from other brands who will jump into the market. TATA will then have to rely on the Brand value that it creates in the market with Nano, first mover advantage and hopefully technological superiority as people would have developed an opinion on the Nano (favorable or unfavorable). A favorable opinion will help TATA fight competition from other brands if they jump in the same space and market. As more consumers would know about Nano or would have tried it they will want to stick with the brand as it still would be an innovative product. Thus other brands would have to try very hard to gain market share if Nano succeeds in developing a favorable opinion for itself. If however the opinion is not so favorable and positive, then TATA will have to rethink the strategy for the entire market including the elaborate export plans that are already in place.

How long does this meltdown continue to slow markets (especially Automobile Market) will now be another factor at play in forming of opinions towards the Nano. With the credit crunch already hitting business incomes and salaries in form of cuts people are expected to delay their real estate, property and automobile purchase decisions. The decision to launch TATA Nano came in January 2008 when Indian markets were at unforeseen peaks however things have taken a turn and uncertainty is the only certain and prevalent mood. Opinions on 2009 are mixed, hence people are delaying purchases. This factor may work against Nano by way of restricting the earlier projected sales figures.

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TATA Nano will be a bridge car between the automobile and the two wheeler market. This new market that Nano will create will not eat into the market of other car segments, but will affect the two-wheeler market drastically. For other players, there are two strategies: First, get into this segment yourself. Second, cut down on operational expenses and make existing products available at a cheaper price. The competition will have to wait and watch how Nano is received, what all has gone into it to make it so affordable and then try and work a strategy around it. Even if Nano manages to convert 10% of existing the two-wheeler market-which is close to 900 million-Nano will have almost 50% market share of the car market. But that is provided that Nano remains the only car in that segment. Chances are this will become the hotbed for competition.

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Brand perception of TATA NANO

QUESTIONNAIRE Name: ____________________ Sex: ______________________ Age:______________________ Occupation:________________ 1) Does any brand name affect your buying behavior? Yes NO Can't Say

2) Does price affect what you buy? Yes NO

Can't Say

3) Will you stick to the same product if their price is increased (and you are a loyal? Customer to the product)? 1. Up to a certain limit in price increase 2. Yes, irrespective of the prices increase 3. No, I may look for different products 4). Do you think NANO is a peoples car? A- Yes B- no C- cant say

5).If the prices of NANO increase, would you still purchase it? A- Yes B- no C- cant say

6) What do you think are the features that attract you to NANO ? A. B. C. D. Value for money Easy to drive Brand name of TATA Design

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(Objective: What are special features they are looking forward in Nano?) 7) Do you agree with the fact that NANO will cause traffic hold up in the city? A. B. C. D. E. Strongly Disagree Disagree Neither agree nor disagree Agree Strongly Agree

8) NANOs tagline Indias car is so because A. B. C. D. It caters to hugely dominant middle class First of its own kind Substitute for your two wheelers Innovation of any Indian company

9) Do you agree that TATAs brand name will have an effect on NANOs purchase? A. B. C. D. E. Strongly disagree Disagree Neither agree nor disagree Agree Strongly Agree

(Objective: Consumers perception towards other TATAs four wheelers) 10) Do you agree to companys claims that it is a safe car?

A. B. C. D. E.

Strongly Disagree Disagree Neither agree nor disagree Agree Strongly Agree

11. Do you think a low cost car like NANO will lead to a huge addition in pollution? A. Yes B. No

Thank You for Your Co-operation

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BIBLIOGRAPHY

WEBSITES:http://www.financialexpress.com/news/tata-nanosdesign http://www.tatamotors.com/our_world/press_release.php http://www.ctv.ca/servlet/articlenews/story/ctvnews/20080118/india_nano http://www.hindu.com/2008/01/11/stories/2008011161870100.htm http://www.knowledgebase-script.com/demo/article-562.htm www.autocarindia.com www.tatanano.in www.tatamotors.in www.times of india.mht www.economic times.mth

BOOKS: BUSINESS RESEARCH METHODS BY RAJENDRA NARGUNDKAR. MARKETING MANAGEMENT BY KOTLER PHILIP, KELLER KEVIN LANE. ORGANIZATIONAL BEHAVIOUR BY STEPHEN P. ROBBINS.

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Thank u

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