STUDY ON VARIOUS ASPECTS OF CONSUMER BEHAVIOR TOWARDS THE LAUNCH OF TATA NANO IN NEPALESE MARKET

Presented By: Nitesh Kayastha Samita Neupane Surina Dongol Sushma Dawadi

INTRODUCTION
Inexpensive, rear-engine; four-passenger city car, designed by Tata Motors. Appreciated for its low-cost. Launched as peoples car. Intended for the family of four that would otherwise ride on a scooter, balancing a tiny tot on the front and a baby on the wifes lap.

FEATURES

MODELS AND PRICING DURING LAUNCH

Nano is available in three models:

Standard model at US$3,166.6 Nano CX at US$3,813.3 Nano LX at US$4,348.5

PERFORMANCE IN INDIA

Advantages

Ambitions to become a modern nation. Gives a mileage of 20 kmpl on an avg. Tubeless tyres. In luxury version, AC with heater is available. The car is eco friendly. The interior space is larger compare to other small cars. The car is shorter in length so that you can park it easily.

PERFORMANCE IN INDIA

Complaints

Uneven weight distribution Poor cornering and poor handling Poor engine cooling and hence more chance for engine overheating Almost no boot space and cramped space for rear passengers Absence of power steering

NANO IN NEPALESE MARKET

SEGMENTATION

Demographic
Age: 18-30 yrs Gender: Male/Female Family size: less than 5 Income: Rs. 30,000-50,000 Education: Fresh Graduates Social class: Middle class

Geographic
City: Kathmandu, Pokhara, Birgunj, Biratnagar etc. City Type: Metropolitian Cities, small cities, towns. Density of Area: Urban, Semi-urban

SEGMENTATION

Psychographic

Personality: Social, Ambitious Life style: Traditional, Outdoor oriented or sports oriented Attitude: Symbol of well being

Behavioral
Occasions: Regular and Special Benefits: Quality, Service, Economy and Speed User Status: First time User, Regular User Attitude towards the Car: Positive

TARGET MARKET

lower income group with family, first-time buyers of car (fresh graduates) and motorcycle owners Size:
Target Kathmandu and other urban or semi-urban cities Size of the market is quite good

Expected Growth:
The income status is increasing in Nepal Market would be ever growing in Nepal.

TARGET MARKET

Competitive position:

Maruti ALTO low cost good mileage safety

Cost of reaching the market:

Already have established a good market in Nepal

Compatibility with the organizations objectives and resources:

Companys objective to cater to middle class

POSITIONING
Worlds most affordable car Best option for a first car BEST FIRST CAR an average Nepalese can have

SOCIAL CLASS AND TATA NANO

For Working class / lower Class: Tata Nano is the far dream For Middle: The Nano will be their first car. For Upper Middle: It will be their second car, wheels they can take to the local market and everyday use. For Lower Upper: Nano will possibly be the third in their garage around. For Upper Upper: They wouldnt even consider buying except for some exceptions

Social Comparison Theory

Status Consumption Concept

TARGET SEGMENT- UPPER MIDDLES AND MIDDLES

Upper Middle- Willing to compromise, dont have unusual wealths Middle- Price most important factor, Extra facilities and aesthetics are not important 362 bookings till now-mostly from above classes

CONSUMER IMAGERY OF TATA NANO

Product and Service Image

Cheapest Car, Economically Viable

Perceived Price

Comparatively higher than in India due to tax and custom

PERCEIVED QUALITY
Intrinsic Cues: Small, affordable, appearance Extrinsic Cues: A car from Tata Motors

Price Quality Relationship: The price of Tata Nano makes people doubt on its quality

PERCEIVED RISK
Functional Risk- Mileage and engine problem Psychological Risk Cheap word tagged to it Time Risk- spend much time but not performing as per expectation

BRAND PERSONALITY TATA NANO BRAND IDENTITIES ALFER KAPFERER BRAND PRISM
PHYSIQUE Car, Innovative features, Brand name

CULTURE Target People: Middle class, Govt Service, Private Service, NGO Product: Technology savvy and Iconoclastic

PERSONALITY Culture oriented, Sports oriented, outdoor oriented

RELATIONSHIP
Benifits, Quality, Service, Economic

REFLECTION Buyer: First time user, Regular user

SELF IMAGE Enthusiastic positive

BUYING BEHAVIOR IN NEPAL

ANALYSIS OF STAGES IN COMPLEX BUYING

BEHAVIOR

Need Recognition Information search Evaluation of alternative Purchase decision Post purchase evaluation

NEED RECOGNITION & INFORMATION SEARCH

Need Recognition Information Search

Need 8%

Newspaper 20%
Esteem 24% TV advertise 15% Safety 68%

Word of mouth 25%

Campaign 40%

EVALUATION OF ALTERNATIVE
TATA NANO Price (Ex-Showroom) Immobilizer Overall Length Mileage (Highway) Seating Capacity Maximum Speed Front Brakes Rear Brakes 3099 mm 24 km/litre 4 Person 105 Km/Hour 180 mm dia. drum b 180 mm dia. drum brake 3495 mm 18.3 km/litre 5 Person 137 Km/Hour Disc Drum Rs. 7 to 8 Lakhs ALTO Rs. 12 to 14 Lakhs

PURCHASE DECISION & POST PURCHASE

EVALUATION

Decision making will be item first, outlet second

Satisfaction:
80% of the users are satisfied 20% people are dissatisfied due to interior of the car, finishing of the car, delivery time and front view.

Safety:
80% of the people feel that they feel Average safe 20% of people feel that it is equally safe as big cars.

CONCLUSION & RECOMMENDATION

Tata should work on marketing campaigns and advertising to:

Upper middle class Middle class Working women College graduates Motorbike owners

Price: higher than expected in Nepal, should work on cost cutting. Safety: communicate safety in terms of poor engine cooling.

CARTOONS DEPICTING THE CONSUMER PERCEPTION ON TATA NANO IN INDIA

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