Tata nano relaunch - Tata nano DC (Dream Car)

N
NANO DC
About The Industry
Company Profile
Introduction
Competitors
Marketing Mix
Distribution
SWOT Analysis
PEST Analysis
Product life cycle
curve
Target Segment
Marketing Strategies
Financial projection
Implementation control
Break even analysis
In the post globalized era where India is looking at growth rates of more than 8%,
In the post globalized era where India is looking at growth rates of more than 8%,
one of the main beneficiaries of India’s growth story is Automobile Industry.
one of the main beneficiaries of India’s growth story is Automobile Industry.
Termed as “Industry of Industries” by management guru Peter Drucker,
Termed as “Industry of Industries” by management guru Peter Drucker,
Automobile industry has been one of the indicators of aacountry’s economic
Automobile industry has been one of the indicators of country’s economic
prosperity. Prior to the 1991 liberalization, auto industry in India was controlled
prosperity. Prior to the 1991 liberalization, auto industry in India was controlled
and licensed by the government. Post 1991, the industry has grown at an average
and licensed by the government. Post 1991, the industry has grown at an average
rate of 17%. Currently contributing to around 5% of the GDP, this is expected to
rate of 17%. Currently contributing to around 5% of the GDP, this is expected to
rise to 10% of GDP.
rise to 10% of GDP.
Headquarters - Mumbai.
TML is currently headed by Ratan Tata.
Tata Motors manufactures HCV, LCV,
 Passenger cars, MUV and Military Vehicles.
Global operations - UK, South Korea, Thailand and Spain.
TML - world's fourth largest truck manufacturer. world’s second largest bus
manufacturer.
Holding 60% of market shares in commercial vehicles.
Holding 60% of market shares in commercial vehicles.

With revenue of USD 14Billion(2007-2008),Tata Motors
With revenue of USD 14Billion(2007-2008),Tata Motors
is the largest automobile company.
is the largest automobile company.

What do we want them to THINK
What do we want them to THINK

First Indian Company to be listed in the New York
First Indian Company to be listed in the New York
Exchange
Exchange

Dealership operating in 26countries across 4 continents.
Dealership operating in 26countries across 4 continents.
SE DS OF DRE
E
AM

I observed families
riding on two-wheeler
the father driving the
scooter, his young kid
standing in front of
him, his wife seated
behind him holding a
little baby. It led me to
wonder for such a car
which is safe & affordable
to any middle class family.
INT
RODUCT
ION OF T A NANO DC
AT
“Dream-dream and dream, because dream gives vision, vision gives thoughts
and finally thoughts lead to the action". Each letter of these motivational
words said by India's former President Dr. A.P.J. Abdul Kalam goes exactly
with Mr. Ratan Tata, Chairman of Tata group, who in the year 2003, introduce
a affordable car for the common people. Innovatively planning to form one
more series of Nano Dc.
The Nano Dc has created a completely new category and continues to
innovate in line with the evolution of the market.
The awesome spirit of the Nano Dc - of living life on your own terms - is
depicted through the colourful world of Nano Dc and the people in this world
who share the brand's unique attitude - to do things bigger, better, and
differently.
Tata nano relaunch - Tata nano DC (Dream Car)
Competitors
1. Maruti Alto 800
Price: 2.44 - 3.56 lakh
Mileage: 22.74 Kmpl

•

o Present nearest
rivals

•

2. Hyundai i10
Price: 3.69 – 6.15 lakh
Mileage: 20.36 kmpl

•

3. Hyundai EON
Price: 2.73 - 3.76 lakh
Mileage: 21.1 kmpl

oInternal competitor

o Future competitor
Competitors
1.Tata Indica V2
Price: 3.99 - 4.33 lakh
Mileage: 17.88 kmpl

•

o Present nearest

•

2.Tata Venture
Price: 4.57 - 5.34 lakh
Mileage: 15.42 kmpl

•

3.Tata Indica Vista
Price: 4.61 - 6.83 lakh
Mileage: 19.1 kmpl

rivals

oInternal competitor

o Future competitor
Competitors
o Present nearest
rivals

oInternal competitor

o Future competitor
• 31 DESIGN AND
TECHNOLOGY
PATENTS

• AMAZING FUEL
EFFICIENT AT
60MPG

• Cutting edeg
aesthetics and
functionality

• Now fuel prices
won't decide
where you go

• Tell like an SUV

• 6 EXITING
COLOURS

• New
Amphistream
Music System

• Best-in-class
AC

• Best Petrol
mileage of 25
Kmpl#

• Warranty for 4
years / 60,000
KM^

• What's your
pick?

• Remote keyless
entry

• HIGH GROUND
CLEARANCE
Marketing Mix
NANO Dc is using Hub and Spoke Model for distribution
NANO Dc is using Hub and Spoke Model for distribution
TATA has many C&F Agents (Collects Nano Dc from hubs and
TATA has many C&F Agents (Collects Nano Dc from hubs and
distribute it across nation)
distribute it across nation)

 While the Nano Dc 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.
 While the Nano Dc seemed tailor-made for rural drivers, Tata only has
dealers in major cities. The car’s reputation was further damaged when
five of the first 30,000 cars had engine fires. Although no one was hurt
in these instances, two of the cars burnt to the ground.
 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. Even
without the social stigma, this price left many people wondering why
they would choose to buy a car that didn’t even have a trunk
Tata nano relaunch - Tata nano DC (Dream Car)
Tata nano relaunch - Tata nano DC (Dream Car)
Tata nano relaunch - Tata nano DC (Dream Car)
Tata nano relaunch - Tata nano DC (Dream Car)
Tata nano relaunch - Tata nano DC (Dream Car)
Marketing Strategies.

• Online Marketing

For marketing strategy Tata
had use conventional media in
an unconventional manner.

• Offline Markting

Nano DC isn’t big on
advertising. There are no TV
campaign.
Only innovative use of print,
radio and other media,
particularly the web.
Online Marketing
Online
Social Media

Nano Game

The major sections of the site are:
a. Galary (both pictures and videos).
b. Game (rather Link to a nice virtual driving
DC
game by Zapak).
c. Community.
d. Why Nano?
e. Booking Details

Website: www.tatananodc.com
Online Marketing
Online


Social Media

Facebook



Blog



Nano Game

Orkut



YouTube

DC
Online Marketing
Online

Social Media

Nano Game

The game by zapak was a great move to
spread word about the car.
Offline Marketing

Offline

Print Media

Collaborations: Tata partnered with a few banks for
releasing application forms.
Leveraging Existing Infrastructure: People can find
Nano Dc merchandise, application forms and demo cars in
Tata Indicom, Titan, Croma and Westside stores. Tata
Indicom is also offering a money-back offer with every
application form.
TV: Tata also invest heavily into TV commercials.
 Instead of anchors saying ‘we’ll be back after a
short break’ on TV channels, now they’re saying,
‘We’ll be back after a Nano break.’
Offline Marketing


The
grand
Relaunching
ceremony of Tata Nano DC was
covered by all kind of media
personal. It was a front page
headline in many leading
newspapers.



International motor show at
Geneva where Mr. Tata shows
the Nano DC in front of
international media.



Business tycoon like Mr. Tata
when delivered the New Nano
DC to a comman person, itself it
makes a big news.

Offline

Print Media
Tata nano relaunch - Tata nano DC (Dream Car)
Newspaper

Size
(Color Ad)

Rate of 1
day

Total rate
for 3 days
in a week

Duration

Total cost
for 2
months

Times of
India

Full page

14,85,000

44,55,000

2 months

3,56,40,000

Channels

Timing (Slots)

1 day cost for
airing Ad for 8
times
(30 sec)

Total cost for 2
months

MTV

7pm – 11 pm

15 Lakh

9,00,00,000

Aaj Tak

7pm – 11 pm

18 Lakh

10,80,00,000

Star Plus

7pm – 11 pm

20 Lakh

12,00,00,000
31,80,00,000
Location

Size (cm)

Rate of 1
billboard
for
2 months

Rate of 5
billboards
for 2
months

Frequency Total cost

City

400*500

12,03,960

60,19,800

20

12,03,96,000

Highways

720*2400

18,06,680

90,33,400

20

18,06,68,000
30,10,64,000
Break even analysis
•

Break even analysis indicates that 3742 unit or 65,47,04,000 will be
required in monthly sales revenue to reach the break even point.
• Table: Break Even Analysis
100000
• Break even analysis :
90000
• Total expenses / revenue
80000
per car
70000
65,47,04,000/175000
60000
= 3741.1657
fixed cost
50000
So the Break even could
total cost
40000
have been achived after
total revenue
30000
3742units of car sold.
20000
10000
0
1000

2000

3000

4000

5000

6000

7000
Break even analysis
•

Break even analysis indicates that 3742 unit or 65,47,04,000 will be
required in monthly sales revenue to reach the break even point.
• Table: Break Even Analysis
• Break even analysis :
• Total expenses / revenue
per car
65,47,04,000/175000
= 3741.1657
So the Break even could
have been achived after
3742units of car sold.
Tata nano relaunch - Tata nano DC (Dream Car)
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Tata nano relaunch - Tata nano DC (Dream Car)

  • 2. About The Industry Company Profile Introduction Competitors Marketing Mix Distribution SWOT Analysis
  • 3. PEST Analysis Product life cycle curve Target Segment Marketing Strategies Financial projection Implementation control Break even analysis
  • 4. In the post globalized era where India is looking at growth rates of more than 8%, In the post globalized era where India is looking at growth rates of more than 8%, one of the main beneficiaries of India’s growth story is Automobile Industry. one of the main beneficiaries of India’s growth story is Automobile Industry. Termed as “Industry of Industries” by management guru Peter Drucker, Termed as “Industry of Industries” by management guru Peter Drucker, Automobile industry has been one of the indicators of aacountry’s economic Automobile industry has been one of the indicators of country’s economic prosperity. Prior to the 1991 liberalization, auto industry in India was controlled prosperity. Prior to the 1991 liberalization, auto industry in India was controlled and licensed by the government. Post 1991, the industry has grown at an average and licensed by the government. Post 1991, the industry has grown at an average rate of 17%. Currently contributing to around 5% of the GDP, this is expected to rate of 17%. Currently contributing to around 5% of the GDP, this is expected to rise to 10% of GDP. rise to 10% of GDP.
  • 5. Headquarters - Mumbai. TML is currently headed by Ratan Tata. Tata Motors manufactures HCV, LCV,  Passenger cars, MUV and Military Vehicles. Global operations - UK, South Korea, Thailand and Spain. TML - world's fourth largest truck manufacturer. world’s second largest bus manufacturer.
  • 6. Holding 60% of market shares in commercial vehicles. Holding 60% of market shares in commercial vehicles. With revenue of USD 14Billion(2007-2008),Tata Motors With revenue of USD 14Billion(2007-2008),Tata Motors is the largest automobile company. is the largest automobile company. What do we want them to THINK What do we want them to THINK First Indian Company to be listed in the New York First Indian Company to be listed in the New York Exchange Exchange Dealership operating in 26countries across 4 continents. Dealership operating in 26countries across 4 continents.
  • 7. SE DS OF DRE E AM I observed families riding on two-wheeler the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby. It led me to wonder for such a car which is safe & affordable to any middle class family.
  • 8. INT RODUCT ION OF T A NANO DC AT “Dream-dream and dream, because dream gives vision, vision gives thoughts and finally thoughts lead to the action". Each letter of these motivational words said by India's former President Dr. A.P.J. Abdul Kalam goes exactly with Mr. Ratan Tata, Chairman of Tata group, who in the year 2003, introduce a affordable car for the common people. Innovatively planning to form one more series of Nano Dc. The Nano Dc has created a completely new category and continues to innovate in line with the evolution of the market. The awesome spirit of the Nano Dc - of living life on your own terms - is depicted through the colourful world of Nano Dc and the people in this world who share the brand's unique attitude - to do things bigger, better, and differently.
  • 10. Competitors 1. Maruti Alto 800 Price: 2.44 - 3.56 lakh Mileage: 22.74 Kmpl • o Present nearest rivals • 2. Hyundai i10 Price: 3.69 – 6.15 lakh Mileage: 20.36 kmpl • 3. Hyundai EON Price: 2.73 - 3.76 lakh Mileage: 21.1 kmpl oInternal competitor o Future competitor
  • 11. Competitors 1.Tata Indica V2 Price: 3.99 - 4.33 lakh Mileage: 17.88 kmpl • o Present nearest • 2.Tata Venture Price: 4.57 - 5.34 lakh Mileage: 15.42 kmpl • 3.Tata Indica Vista Price: 4.61 - 6.83 lakh Mileage: 19.1 kmpl rivals oInternal competitor o Future competitor
  • 12. Competitors o Present nearest rivals oInternal competitor o Future competitor
  • 13. • 31 DESIGN AND TECHNOLOGY PATENTS • AMAZING FUEL EFFICIENT AT 60MPG • Cutting edeg aesthetics and functionality • Now fuel prices won't decide where you go • Tell like an SUV • 6 EXITING COLOURS • New Amphistream Music System • Best-in-class AC • Best Petrol mileage of 25 Kmpl# • Warranty for 4 years / 60,000 KM^ • What's your pick? • Remote keyless entry • HIGH GROUND CLEARANCE
  • 15. NANO Dc is using Hub and Spoke Model for distribution NANO Dc is using Hub and Spoke Model for distribution TATA has many C&F Agents (Collects Nano Dc from hubs and TATA has many C&F Agents (Collects Nano Dc from hubs and distribute it across nation) distribute it across nation)  While the Nano Dc 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.  While the Nano Dc seemed tailor-made for rural drivers, Tata only has dealers in major cities. The car’s reputation was further damaged when five of the first 30,000 cars had engine fires. Although no one was hurt in these instances, two of the cars burnt to the ground.  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. Even without the social stigma, this price left many people wondering why they would choose to buy a car that didn’t even have a trunk
  • 21. Marketing Strategies. • Online Marketing For marketing strategy Tata had use conventional media in an unconventional manner. • Offline Markting Nano DC isn’t big on advertising. There are no TV campaign. Only innovative use of print, radio and other media, particularly the web.
  • 22. Online Marketing Online Social Media Nano Game The major sections of the site are: a. Galary (both pictures and videos). b. Game (rather Link to a nice virtual driving DC game by Zapak). c. Community. d. Why Nano? e. Booking Details Website: www.tatananodc.com
  • 24. Online Marketing Online Social Media Nano Game The game by zapak was a great move to spread word about the car.
  • 25. Offline Marketing Offline Print Media Collaborations: Tata partnered with a few banks for releasing application forms. Leveraging Existing Infrastructure: People can find Nano Dc merchandise, application forms and demo cars in Tata Indicom, Titan, Croma and Westside stores. Tata Indicom is also offering a money-back offer with every application form. TV: Tata also invest heavily into TV commercials.  Instead of anchors saying ‘we’ll be back after a short break’ on TV channels, now they’re saying, ‘We’ll be back after a Nano break.’
  • 26. Offline Marketing  The grand Relaunching ceremony of Tata Nano DC was covered by all kind of media personal. It was a front page headline in many leading newspapers.  International motor show at Geneva where Mr. Tata shows the Nano DC in front of international media.  Business tycoon like Mr. Tata when delivered the New Nano DC to a comman person, itself it makes a big news. Offline Print Media
  • 28. Newspaper Size (Color Ad) Rate of 1 day Total rate for 3 days in a week Duration Total cost for 2 months Times of India Full page 14,85,000 44,55,000 2 months 3,56,40,000 Channels Timing (Slots) 1 day cost for airing Ad for 8 times (30 sec) Total cost for 2 months MTV 7pm – 11 pm 15 Lakh 9,00,00,000 Aaj Tak 7pm – 11 pm 18 Lakh 10,80,00,000 Star Plus 7pm – 11 pm 20 Lakh 12,00,00,000 31,80,00,000
  • 29. Location Size (cm) Rate of 1 billboard for 2 months Rate of 5 billboards for 2 months Frequency Total cost City 400*500 12,03,960 60,19,800 20 12,03,96,000 Highways 720*2400 18,06,680 90,33,400 20 18,06,68,000 30,10,64,000
  • 30. Break even analysis • Break even analysis indicates that 3742 unit or 65,47,04,000 will be required in monthly sales revenue to reach the break even point. • Table: Break Even Analysis 100000 • Break even analysis : 90000 • Total expenses / revenue 80000 per car 70000 65,47,04,000/175000 60000 = 3741.1657 fixed cost 50000 So the Break even could total cost 40000 have been achived after total revenue 30000 3742units of car sold. 20000 10000 0 1000 2000 3000 4000 5000 6000 7000
  • 31. Break even analysis • Break even analysis indicates that 3742 unit or 65,47,04,000 will be required in monthly sales revenue to reach the break even point. • Table: Break Even Analysis • Break even analysis : • Total expenses / revenue per car 65,47,04,000/175000 = 3741.1657 So the Break even could have been achived after 3742units of car sold.