MARKETING STRATEGY

OF

PRESENTED BY-
Deepak Khandelwal
Ankit Pandey
Irfan Safi
 Contents
• Idea Generation
• History
• Introduction
• Product Specification
• Product Features
• Pricing
• Promotion
• Distribution
• SWOT analysis
• Post purchase service
 Idea generation
• “I saw families riding around on
scooters with kids standing up
and the mother carrying a baby
and sitting pillion and decided to
do something about it. It started
as a quest for an affordable
transportation solution”.

-- Ratan Tata
 History
 Tata Motors Limited, formerly known as TELCO (TATA
Engineering and Locomotive Company), is a multinational
corporation headquartered in Mumbai, India. It is India's largest
passenger automobile and commercial vehicle manufacturing
company. Part of the Tata Group, and one of the world's largest
manufacturers of commercial vehicles.

 The OICA ranked it as the world's 20th largest automaker, based

on figures for 2006.

 Tata Motors has its manufacturing base in Jamshedpur,

Pantnagar, Lucknow, Pune.
 Tata Motors was established in 1945, when the company began
manufacturing locomotives. The company manufactured its first
commercial vehicle in 1954 in collaboration with Daimler-Benz AG,
which ended in 1969.

 In March 2008, it finalised a deal with Ford Motor Company to

acquire their British Jaguar Land Rover (JLR) business, which also
includes the Rover, Daimler and Lanchester brand names.The
purchase was completed on 2nd June 2008.
 .
Introduction
 The Tata Nano was introduced at the 9th auto expo by Tata
Motors in New Delhi, India on Jan. 10, 2008.

 Tata Nano is made for medium class family it is Small,

affordable and great Stylish Car.

 The car itself is expected to boost the Indian Economy as well

as expand the Indian car market by 65%, according to rating
agency CRISIL
 Specification
• Looks: The snub-nosed car keeps in the tradition of the Fiat 500, Nissan
Micra and the Smart.
• Dimensions: 3.1 metres (10.23 feet) long, 1.5 metres wide and 1.6 metres
high. Can seat four to five people
• Engine: A two cylinder 623 cc, 35 horsepower rear mounted, all
aluminium, multi-point fuel injection petrol engine can power the car to
top speeds of 105 kilometres per hour (65 miles per hour).
• Fuel Efficiency: 20 kilometres per litre, or 50 miles per gallon is claimed.
• Pollution: Exceeds Indian regulatory requirements and can meet strict
Euro IV emission standards. In terms of overall pollutants, Tata says the
car is better than two-wheelers manufactured in India currently
 Specification….
• Safety: Car exceeds current regulatory requirements with a strong
passenger compartment, crumple zones, intrusion resistant doors, seat
belts, strong seats and anchorage.
• Nearest Domestic Car Rival: Maruti 800, part of Japanese-owned
Suzuki Maruti stable whose base model sells for about 4,800 dollars --
nearly double the price of the Nano
• Nearest International Rival: China's Chery QQ which retails for
3,600 dollars.
• Market: India's car market is a huge draw because car penetration is
just seven per 1,000 people, compared to 550 per 1,000 in such
countries as Germany or 476 in France, according to the Society of
Indian Automobiles.
 Maruti 800 Tata Nano
Engine 800 cc 623 cc
Length 3.335 m 3.1 m
Width 1.440 m 1.5 m
Height 1.405 m 1.6 m
Top speed 120 km/hr 90 km/hr
Cost 2.25 Lakh (on road) 1.26 lakh (on road)
• Length:- 3.1 mtr
• Wide:- 1.5 mtr
• Height:- 1.6 mtr
• Weight:- 600 Kg
• Mileage:- 20 Kmpl
• Fuel tank:- 15 Ltr
• Engine:- 623 cc
• Top speed:- 95-100 Kph
• Ground clearance:- 180 mm
• Gear box:- 4-speed
 Variants
Models Ex-showroom
prices
Nano Standard Rs 1,23,360
Nano Deluxe-Cx Rs 1,51,360
Nano luxury-Lx Rs 1,72,360
Engine Options – Petrol, Diesel, Hybrid, Electric, Compressed Air
Diesel Engine
Petrol Engine
Jointly developed with Diesel Engine
2 cylinder petrol all aluminium Engine
specialist FEV
624 cc 684 cc
Bosch multi-point fuel injection (mpfi) Smallest Common Rail Turbocharged
Diesel engine
 Vehicle Summary
Body Type Hatchback

Seating Capacity 4

Transmission 4 Speed Manual

Suspension McPherson strut

& Independent
coil spring

Brakes Front Disk, Rear

Drum

Kerb Weight 580 Kgs

Fuel Tank 30 Litres

Ground 180 mm
Clearance

Wheels 12 inch
• Though the one lakh price tag is not fixed by TATA group, it was the
word of mouth of people which fixed that range. This expectation of
people creates a big challenge for the company. To accept this
challenge the following strategies are followed:-

• Target costing method

• Penetration pricing
• Low pricing policy with minimum profit margin.
 Promotion
* Enough use of one of the most important element of
promotion mix , publicity reduces the necessity of other
promotional devices for nano. Nano got publicity in the
following ways:-

 * Publicity as “One lakh car” by mouth to mouth.

o * Auto expo 2008,New Delhi & Geneva
o * Publicity through print & electronic media.
o * Internet will be a major media for advertising.
* For other type of promotional activities ,cost factor that is
1 lakh price tag is to be keep in mind, TATA is going to
launch its nano mobile for indicom user, nano watches ,
nano T-shirts available in Westside stores .

*Advertising:- TV & other mass media will be less

effective, thus too much money will not be invested in this
regard . Mainly word of mouth advertising will get more
emphasis
 Online buzz:-Nano has gone beyond the traditional methods of advertising
and promotion online .

 Social Media communities:-

 Official Orkut community Members - 6,906.
 Official Facebook Group Fans - 4,210
 Highest View Count on You Tube- 303,006 (it was just under 3,00,000 when
I began writing this post)
 No. of Blog Posts - 61,664
 TATA have a blog on the official website where they have been discussing
quite interesting topics and generally maintaining an active community
 distribution

 TATA, it’s business has been extended to the overseas i.e. to the
Europe, Africa, U.S & Australia.

 Hence it has n-number of showrooms in India & outside of India.

 The exclusive showrooms are the best distribution channels for

TATA itself.
 SWOT analysis
STRENGTH Price, mileage, style, brand name, all weather vehicle,
first innovation.

WEAKNESS Fiber body, low suspension power,

low engine capacity, light vehicle,
not suitable for hilly areas, delay due to singur
violation.
OPPORTUNITY Bikers can be motivated, auto rickshaw
& second hand market can be motivated.

THREAT Other competitors (Honda, Maruti , Tara tiny) not eco-

friendly, Govt. may come with new rule.
• Family of four riding a scooter on wet roads
• Two Wheeler Market
• Used Cars Market
• second hand car user
• middle and lower income group people.
 Post purchase service
• -As Tata is going to provide this car with rupees one lakh
only, so it may not give the same service like it’s other
vehicles.
• -But it’s post purchase services will be better than a costlier
bike.
• -Customers may get minimum three services from Tata in
any of it’s servicing center, all over the country.
• -We the future customers, can also hope for additional
services from TATA group.
 Conclusion
• World is getting tougher day by day being unique is a
competitive advantage. Expectations to Nano has proved this .

• After 100 years to Henry Ford , Tata has proved him again not
only he came out of the expectations but also came out with a
platform for Indian auto sector .

• So this as per this project conclusion can be draw as a future

car not only of Indian but also if exported than could be to the
world.
 Important questions ?
• Will the Nano succeed?

• Is it fair to blame the Nano for the (upcoming)

ills of Indian road infrastructure?

• Is the Nano a car of the future?