IILM Institute for Higher Education

School of Business

Project on NANO

Submitted by:
Himanshu Sharma

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TASK INVOLVED

 Discussion with decision maker

 Interviews with experts

 Secondary data analysis

As our project is on Tata Nano and we were not able to make our approach to discuss with the
decision maker, interviewing with industry expert, and secondary data analysis. Since Nano is
only pre-launched and the final launch will take place in September 2008, and as this is the
new segment created by Tata’s so there was no secondary data available.

 Qualitative research

In qualitative research we performed focus group in which we took a sample of 10-

respondents. Who had a previous driving experience, driving licence, knowledge about Nano,
and were from different cultures, regions, and of age group between 20-25yr. We made them
aware about the topic, and collected their views about Nano.

ENVIRONMENTAL CONTEXT OF THE PROBLEM

PAST INFORMATION AND FORECAST

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

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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.

BUYER BEHAVIOUR
In India the market for four wheeler is huge.

Demographic feature is also favourable for India

LEGAL ENVIRONMENT
With the increase in volume of traffic there will be pollution problems and also will increase
the accidents.

ECONOMIC ENVIRONMENT
As the GDP of India is rising the living standard of consumers is also rising and now their
purchasing power is also increasing. So there is more disposable income.

MARKETING AND TECHNOLOGICAL SKILLS

Tata has expertise in marketing and technology. Bosch developed 623.6cc multi point fuel
injection system engine will produce 33ps, which will give a performance of 20kmpl. The car
has its engine at rear which increases the inner space of the car and it also has an air
conditioner with heater.

As far as the marketing of the Nano is concern, the affect of the promotion strategy can be
seen during the launch of Nano in Auto-Expo 2008, New Delhi as the car has made huge
impact on national and international media.

Management decision and Marketing research problem

Management decision problem:-

1. Will the conversion of ‘Nano’ to a taxi affect brand image and consequently sales?

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 2. Will initial demand may lead to stock out.

3. Whether the prices of ‘Nano’ will be sustained over a period of time with the
economic changes in raw material price rise?

4. With the hike in sales of ‘Nano’, whether the infrastructure of the country will be able
to sustain the volume of traffic?

5. Will the Protest of farmers against Nano plant in Singur affect the sale?

6. Will General Perception of brand “TATA” in small car segment affect the sale?

Marketing research problem:-

1. As price of Nano is 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 perception can affect the
sale of Nano.

Hypotheses

 Conversion of ‘NANO’ to a taxi do not affect the brand image and consequently sales.

 NANO is safe for driving.

 Hike in price of NANO of will not effect the sale.

 People prefer to purchase the NANO instead of two wheeler.

 People can wait for NANO for few months.

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Focus group
Our group conducted a focus group study with 10 respondents from pgp-1, IILM
(GURGAON), Sec-g.

Group Size-10

Time Duration-1 hour

Characteristics of Respondents:-
 All have driving experience

 Between age group 18-25

 All have a Good Knowledge of Nano

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QUES 1- Will the conversion of Nano into a taxi have an impact on its sales?

21 %

Conclusion-Most of the respondents believes that there will be no impact on sales while
others disagreed with this.

QUES 2- Can the company face the problem of stock out? Will it have any impact on sales?

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Conclusion- A majority of the respondents believe that initially there will be a waiting on the
purchase of Nano because of the increase in number of orders and anyhow it will not affect
the sales.

QUES 3- Will Tata be able to maintain the price of Nano in future if there is hike in cost of
raw materials?

25 %

Conclusion- 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 believes in Ratan Tata’s statement that “
promise is a promise” but still all the respondent believe that there will be no impact on sales.

QUES 4- Will our infrastructure be able to sustain the traffic conjunction?

31.25 %

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Conclusion- Most of the respondent believe that the development in Indian infrastructure
will be able to sustain the volume of traffic while the others believe that there will be traffic
conjunctions. Despite of the traffic conjunctions they will still prefer to purchase Nano.

QUES 5- Will the protest by farmers have an impact on its sales?

12.5 %

Conclusion-Most of the respondents felt that the protest by farmers in Singur is for a short
period of time. It is a political issue which does not seems to effect the sales but a quite a few
do not believe in this way. Although the entire respondents feel that Tata’s Nano project in
Singur will lead to the economic development of farmers.

QUES 6- Can the brand name “Tata” (which is known for heavy vehicles) have an impact on
its sales?

25 %

75 %

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Conclusion- 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.

QUES 7- Can upcoming competition (Renault, Bajaj) have an impact on its sales?

Conclusion- Most of the respondent believe that Nano is the pioneer in small car segment
and backed by strong brand name Tata. It will be able to sustain the upcoming competition
from rivalry entering the same market

QUES 8- Whether safety or cost is the top the priority while buying Nano?

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Conclusion- most of the respondent give safety as there top priority while purchasing Nano
and rest of them think that still Nano will be safer than two wheelers.

AN OVER VIEW OR SUM OF ALL THE CONCLUSIONS OF OUR FOCUS

GROUP:-

QUESTIONNAIRE OF TATA-NANO

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

.....................................................................................................................
.................

.....................................................................................................................
.................

.....................................................................................................................
.................

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

1. Yes 3. Can’t say

2. No

3. Which feature of NANO attracts you most, that inspires you to go for
NANO?

1. Price 4. Interior space

2. Design 5. All the above

3. Mileage 6. Can’t say

4. Which colour of NANO would you prefer?

1. Red 4. Yellow

2. Blue 5. Silver

3. White 6. Other, Specify…

…............

5. For what purpose would you like to use NANO?

1. Will offer it to your children to use it in place of a two wheeler.

2. Will use as family car for shopping and travel.

3. Will prefer as a taxi.

4. Would like to offer as gift.

5. Any other, specify.................................

6. Do you think NANO is people's car

1. Yes 3. Can’t say

2. No

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

1. Yes 3. Can’t say

2. No

8. Which small car would you prefer to buy?

1. Maruti 800 3. Other………………..

2. Tata NANO

9. How long can you wait for NANO?

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 1. 1-2 months 3. 4-6 months

2. 2-4 months 4. Can’t wait

10.If the price of NANO rises, would you still purchase it?

1. Yes 3. Can’t say

2. No

11.Will Tata be able to maintain the price of nano in future if there is hike in
cost of raw materials?

1. Yes

2. No 3. Can’t say

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

1. Embarrass 3. Can’t say

2. Don’t care

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

roads?

1. Yes 3. Can’t say

2. No

14.Can you trust NANO for safety?

1. Yes 26-35
2. No 36-45
3. Can’t say 45+

 Both Males and Females

Survey
 Sample Size-330

 Sample groups Location

 Data collection involves a

field force and electronically

 Age Groups-20-25

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SURVEY RESULT AND ANALYSIS
(1) The first thing about NANO, which comes in the mind of all age group (male and female) is-
“compact”, “affordable”, “choti si” (small) and “economic”.

(2) FEMALE (20-25, 26-35, 36-45 AND 45+ RESP.)

MALE (20-25, 26-35, 36-45 AND 45+ RESP.)

ANALYSIS: - Most of the respondents both male and female of all age groups want to purchase NANO
instead of a two wheeler. But the females (70%) between age group 36-45 are highest among all the age
groups.
(3) FEMALE (20-25, 26-35, 36-45 AND 45+ RESP.)

MALE (20-25, 26-35, 36-45 AND 45+ RESP.)

ANALYSIS: - From the finding it came out that most of the respondents both male and female of all age
group consider price as the major purchasing factor while on the other hand there are many who consider
all the factors- price, mileage, design, and interior space. But there is a degree of variation in these
preferences.
(4) MALE (20-25, 26-35, 36-45 AND 45+ RESP.)

FEMALE (20-25, 26-35, 36-45 AND 45+ RESP.)

ANALYSIS: - In the color preference there is a wide difference in their choices. This is as follows-
• Females love to see their NANO mostly in white and silver colour.
• Males in the age group 20-25yrs give weightage to silver and red, and the remaining age
groups prefer white and silver only
• Yellow is found to be the least preferred colour, while there is a significant likeliness for
the black colour also.
(5) MALE (20-25, 26-35, 36-45 AND 45+ RESP.)

FEMALE (20-25, 26-35, 36-45 AND 45+ RESP.)

ANALYSIS: - Females in the age group 20-25 explores a shocking preference for NANO to offer it to
their children, also age group 26-35 want to offer NANO to their children, and the age group 36-45 want
to use it as a “Family Car” for shopping and travel and 46+ want to offer NANO as a “gift”.
Males in the age group 20-25 and 26-35 want to use it as a family car for shopping and travelling. And the
age group of 36-45 give their preference for NANO to offer it to their children. And 45+ want to offer
NANO as a gift.
FEMALE (20-25, 26-35, 36-45 AND 45+ RESP.)

MALE (20-25, 26-35, 36-45 AND 45+ RESP.)

ANALYSIS: - Promotion of Tata NANO in the “Delhi’s Auto Expo” proved to be a great success for
NANO. And with the time before its launch on the roads it (NANO) emerged as the people’s car.
MALE (20-25, 26-35, 36-45 AND 45+ RESP.)

FEMALE (20-25, 26-35, 36-45 AND 45+ RESP.)

ANALYSIS: - All the age groups would like to recommend NANO to their relatives once they have a
good driving experience of NANO after its launch.
MALE (20-25, 26-35, 36-45 AND 45+ RESP.)

FEMALE (20-25, 26-35, 36-45 AND 45+ RESP.)

FEMALE (20-25, 26-35, 36-45 AND 45+ RESP.)

MALE (20-25, 26-35, 36-45 AND 45+ RESP.)

ANALYSIS: - Most of the Females can’t wait for NANO after placing the order but females in the age
group 26-35 are ready to wait for NANO from 4-6 months.
Most of the Males in the age group 20-25 and 36-45 are ready to wait for 2-6 months while others in the
age group 26- 35 can wait for 4-6 months but 45+ are not ready to wait for NANO.

MALE (20-25, 26-35, 36-45 AND 45+ RESP.)

FEMALE (20-25, 26-35, 36-45 AND 45+ RESP.)
ANALYSIS: - Females of all age groups and males of 20-25 and 36-45 age groups do not favour the
increase in price. While the people below 35yrs do not believe that “Tata will be able to maintain the
price” due to increasing raw material prices. But others above this age group believe in Mr. Ratan Tata’s
statement- “promise is a promise” and think that Tata will be able to maintain its prices with its
technology.
MALE (20-25, 26-35, 36-45 AND 45+ RESP.)

MALE (20-25, 26-35, 36-45 AND 45+ RESP.)

ANALYSIS: - Most of the people of all age group do not care about NANO being used as a taxi, as they
feel that this will not hurt their feelings regarding NANO. But females of age group 20-25 do not favour
NANO being used as a taxi as this will embarrass them.
MALE (20-25, 26-35, 36-45 AND 45+ RESP.)

FEMALE (20-25, 26-35, 36-45 AND 45+ RESP.)

ANALYSIS: - All the people believe that there will be a huge traffic problem with the increasing number
of NANO running on the roads.
MALE (20-25, 26-35, 36-45 AND 45+ RESP.)
FEMALE (20-25, 26-35, 36-45 AND 45+ RESP.)

ANALYSIS: - Females of age group 20-25 and 36-45 can’t trust NANO for safety while the age group
26-35 and 45+ do believe in NANO for safety.
In case of the males, the age group between 20-25 and 26-35 can’t trust NANO for safety, while the
others do believe NANO for safety.
SUGGESTIONS

1. Tata should increase the production of NANO so that customers don’t have to wait much for their
car, as they feel urgency for NANO.

2. As people believes that NANO is people’s car, and will be affordable by common men which was
a dream earlier for them. So the price should be kept stable in future with the increase in price of
raw material. Otherwise it will be out of their reach and people believe in Mr. Ratan Tata’s
statement of- “Promise is a promise”.

3. Tata should give exchange offer against a two/four wheeler so that those consumers can be easily
converted to NANO users.

4. Safety measures can be enhanced, because people consider it as their prime concern while
purchasing.

5. An option for customization should be available.

ANALYSIS OF NANO

Project on marketing research was a learning experience and brought us close to NANO and
provided us depth knowledge through focus group and survey.
 • Focus group ended up with innovative findings, which helped us in going further on the
research. But some time in between the focus group was leading to group discussion.
Which was handled carefully without hurting the feelings of the respondents?

Survey highlighted some futuristic facts about NANO, i.e. Females in the age group 20-25yrs
want to offer NANO to their children. Respondents understood this question with their own
interpretations. Which tells us that questions asked to the respondents should be more simplified?
Because the respondents are diversified.

LIMITATIONS
"Not even a single thing could be taken as perfect in the Human Resource. If there are some
opportunities and scope of a task there must also be some limitations either in performing or in
their outcomes. We could not ignore our project work's limitations too."

Following are the Major Limitations of our Study: -

 This research is carried out with where so many variables are acting on the research
settings. It is not comparable anyway to be controlled laboratory situations as
available in physical and other exact sciences.

 It is out on individuals, executives etc. who are human beings. Human beings have
tendency to behave artificially when they know that they are being observed. So the
respondents start behaving artificially when they know that their attitudes, opinions
beliefs etc. are being studies. This aspect of human behavior distorts the study results.

 Subjectivity is the main limitations of such studies. It is very difficult to verify the
research results. Also the replications of the same group of respondents produce
 different research results. Verifications very difficult particularly when the primary
data has been collected and used as we have done i.e. main emphasis are on primary
data in our project.

 These sorts of projects take generally longer period than other ones. The time by
which the research results are presented. Situation may undergo a change. Hence,
time gap may effects the successful implementations of research results.