2. History of TATA Motors
96 Companies
650,000 Employees
6 Continents
6th Largest commercial Vehicle Manufacturer
in the world.

3. 2004 1st Indian manufacturing company listed
in NYSE
Manufacturing plants in India :
Jamshedpur, Pune, Lucknow
Assembly Operations across globe
Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russi
a and Senegal.

4. 2004 acquired Daewoo commercial Vehicle co.
Ltd.
o Korea’s 2nd largest Truck manufacturer
2005 acquired 21% stake in Hispano
carroccera
o Spanish bus manufacturer

6. Indian Automobile Market
 Benefited after Liberalization
 2005-2006 One among the largest and fastest growing
car markets.
 Best and Top manufacturers of two and four wheelers
present in India
 Rapidly expanding middle class increases scope of wide
market

7. Unveiled Nano in 2008

8. Questions
How would you segment the Indian
automobile market? Where is Nano likely
to have most appeals? Accordingly how
should it be positioned?

10. Second hand vehicle users
Auto Rickshaw Market
Middle and lower income people
Positioned itself in the mind of people as “The
people’s Car”

11. Will Nano cannibalize Indica and Tata’s
other popular model?

12. Tata Indica – India’s Car
Launched in 1998
Price Approx Rs 3,00000 starting

13. Tata Indigo
Economy car
Launched in 2002
Price approx Rs 4,00,000

14. Tata Nano
“People’s car”
Launched in 2008
Price Approx Rs 1,30000

15. A news report on Nano
 Tata Nano by Tata Motors will have only a marginal
impact on the sale of Maruti-800, said Maruti Suzuki
chairman RC Bhargava
 Two-wheeler makers Hero Honda, Bajaj Auto and TVS
Motors, too, underplayed the anticipated impact of
Nano.
 Mr Bhargava said, “Nano may impact the sale of our
entry-level model Maruti 800.

16. How do you evaluate Nano from the
perspective of Tata motors , perspective of
customers, and society at large?

17. Company Perspective
Tata Nano is a kit Car.
Innovation both in case of value for money
and comfortably
It gives margin 4-10% to dealers. 20 – 25% for
company.
Production of 350000 cars

18. Customer Perspective
Value for Money.
Comfort travelling experience
Low budget car

19. Society Perspective
Considered the market as middle class families
and college students.
“Freedom for Four”

20. What are the economies of the nano for
the channel members .viz component
suppliers, manufacturers and dealers ?

21. Component Supplier
90% of the products are out sourced
75% were single sourced
100 sub contractors

22. Manufacturer
Production of nearly 350000 Nano
Increase in cost of material by 10%
Margin around 20-25% overall
Estimated profit of nearly 900 crore (approx)

23. Dealer
Less outlets so scope of buying from particular
dealer is more , increasing the sales
Pre- booking Demand of Nano was more
during the starting stage .

24.  Should Tata’s Sales and distribution strategy
be changed for Nano? Is the planned
distribution model of local assembly feasible?

25. TATA NANO is using Hub and Spoke Model for
distribution
TATA has many C&F Agents (Collects Nano
from hubs and distribute it across nation)
Sales & Distribution strategy

26. TATA NANO Distribution Model
Hub and Spoke Model

27. While the Nano seemed tailor-made for rural
drivers, Tata only has dealers in major cities.
Lack of dealers in the target market i.e semi
urban cities and rural areas.
Present Issues with sales and
Distribution Strategy

28. Tata has nearly 200 dealers in major cities.
 Reputation was damaged when five of the
first 30,000 cars had engine fires.
The final nail in the coffin is the price: Rising
material costs pushed the car’s price up to Rs.
1.5 lakh the same as a used Maruti 800

29. Target segment

30. • Setting up exclusive showrooms for NANO
• Developing Specialized Logistics Facilities
by collaboration with Specialized logistics
providers
• Should Move from full range dealership to
Product Based Dealership
• Financing better facilities like Tata Finance
Reinvent
the
distribution
strategy
Recommendations

31. • Dedicated Nano kiosks and
Mobile display units, the company
also can step up its drive through
the hinterlands to spruce sales.
• Association with Retail Outlets like
Vishal Mega Mart, Shoppers
Shop, Pantloon etc. (Booking
facilities, with promotion schemes
like ‘Win Silver Coin’)
Reinvent
the
distribution
strategy
Recommendations

32. Suppose Tata wishes to go international with
Nano then which countries will be suitable to
enter and when?

33. Internationally we would like to place Tata
Nano in country like Bangladesh
Assembly plant present in the country
Cost will be low and scope is high.
Not developed country scope of selling to
middle class is High
High demand for low budgetary cars.

34. One more country in the list will be Thailand
More of two wheelers than four wheelers.
Some places they heavily depend on Two
wheelers even for tourism.

35. Adarsh surana, Rishab chandan, Magesh veeramani, Princy koratty Sabari nathan