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Page 1 of 17
Case Study on Tata Nano
Aman Ahuja – A3906415445
AMITY UNIVERSITY UTTAR PRADESH NOIDA
AMITY SCHOOL OF BUSINES...
Page 2 of 17
Case Study on Tata Nano
Aman Ahuja – A3906415445
DECLARATION BY STUDENT
This is to certify that I, ____AMAN A...
Page 3 of 17
Case Study on Tata Nano
Aman Ahuja – A3906415445
Acknowledgments
I highly appreciate my professorat Amity Uni...
Page 4 of 17
Case Study on Tata Nano
Aman Ahuja – A3906415445
TABLE OF CONTENTS
S.No. Topic Page No.
i Declaration by Stud...
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Case Study on Tata Nano
Aman Ahuja – A3906415445
Introduction
Tata Group
Tata Group is a multinational group ...
Page 6 of 17
Case Study on Tata Nano
Aman Ahuja – A3906415445
Tata Nano
Tata Nano is a city car made by Tata motors. This ...
Page 7 of 17
Case Study on Tata Nano
Aman Ahuja – A3906415445
History of Tata Nano
The idea of Tata Nano came to Mr. Ratan...
Page 8 of 17
Case Study on Tata Nano
Aman Ahuja – A3906415445
Comparisonof Tata Nano with its competitors?
Tata Nano Marut...
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Case Study on Tata Nano
Aman Ahuja – A3906415445
9. No air conditioning in base
model
9. No air conditioning ...
Page 10 of 17
Case Study on Tata Nano
Aman Ahuja – A3906415445
Reasons why Tata Nano failed in the Indian market
1. Giving...
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Case Study on Tata Nano
Aman Ahuja – A3906415445
4. Increasing competition of the secondhand market - the ca...
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Case Study on Tata Nano
Aman Ahuja – A3906415445
7. Wrong product placement - Tata Nano positioned it car to...
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Case Study on Tata Nano
Aman Ahuja – A3906415445
SWOT analysis of Tata Nano
Strengths
1. Tata Nano is availa...
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Case Study on Tata Nano
Aman Ahuja – A3906415445
Opportunities
1. Tata Nano can capitalize on the fact that ...
Page 15 of 17
Case Study on Tata Nano
Aman Ahuja – A3906415445
Tata Nano Singur Controversy
This was the controversy that ...
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Case Study on Tata Nano
Aman Ahuja – A3906415445
Conclusion
1. Tata Nano is the world’s cheapest car.
2. It ...
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Case Study on Tata Nano
Aman Ahuja – A3906415445
Bibliography
1. https://en.wikipedia.org/wiki/Tata_Nano
2. ...
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case study on tata nano

  1. 1. Page 1 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 AMITY UNIVERSITY UTTAR PRADESH NOIDA AMITY SCHOOL OF BUSINESS Case Study On TATA NANO Name of the Student: _AMAN AHUJA________ Enrollment Number: __A3906415445_____ Class Roll Number: _____28_____________ Program: BBA (GEN) Batch: 2015-18 Faculty Supervisor: Ms Geetika Jain______
  2. 2. Page 2 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 DECLARATION BY STUDENT This is to certify that I, ____AMAN AHUJA__, a student of BBA of 2015-18 Batch, Amity School of Business, Amity University Uttar Pradesh, Noida have worked under the guidance and supervision of ___Ms Geetika Jain___for NTCC Seminar. This report has the requisite standard for the partial fulfillment of the Graduate Degree in Business Administration. To the best of my knowledge no part of this report has been reproduced from any other report and the contents are based on original research. I am aware that in case of non-compliance, Amity School of Business is entitled to cancel the report. Signature (Student) Name of the student – __AMAN AHUJA_ Enrollment No. – ___A3906415445_____ Batch: 2015-18
  3. 3. Page 3 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 Acknowledgments I highly appreciate my professorat Amity University, Noida, and Ms. Geetika Jain, who patiently guided and motivated me to work through this project. Her guidance to press forward to collect sizable data has been very helpful.
  4. 4. Page 4 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 TABLE OF CONTENTS S.No. Topic Page No. i Declaration by Student 2 ii Acknowledgment 3 1. Introduction 5 2 Tata Group 5 3 Tata Nano 6 4 History of Tata Nano 7 5 Competitors of Tata Nano 8 6 Reasons why Tata Nano failed 10 7 SWOT 13 8 Tata Nano Sungur Controversy 15 9 Conclusion 16 10 Bibliography 17
  5. 5. Page 5 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 Introduction Tata Group Tata Group is a multinational group based in Mumbai, Maharashtra, India. Founded in 1868 by Tata Gamsi and gained international recognition after the purchase of many international companies. It is the largest conglomerate in India and is owned by Tata Sons, a charity registered with the Charity Commissioner of India. Each Tata company or company operates independently under the supervision and supervision of its board of directors and shareholders. There are 30 listed companies in Tata with a combined market capital of approximately US $ 130 billion as of March 2017. Tata's large companies include Tata Steel, Tata Motors, Tata Consulting Services, Tata Energy, Tata Chemicals, Tata International Beverages, Tata Telefares, Titan, Tata Communications and Crown Group.
  6. 6. Page 6 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 Tata Nano Tata Nano is a city car made by Tata motors. This car is made and sold in India. Tata Nano is made a budget friendly car and it was launched on a price tag of one lakh rupees (Rs. 1, 00,000). This car was targeted to be bought instead of motor cycles by the middle class people.
  7. 7. Page 7 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 History of Tata Nano The idea of Tata Nano came to Mr. Ratan Tata. He was travelling on a rainy day when he saw a man carrying his whole family (4 people) on a bike. Mr. Ratan Tata saw that the man was facing a lot of problem while driving his bike as it was raining and his bike was overloaded. This event struck and idea to Mr. Ratan Tata about building a car that was big enough for a small family and affordable by people who ride bikes. His first idea was to develop a safer bike, he made designs of bikes with 2 rare wheels, then he made a design with a safety cage around the bike but none looked feasible. He also thought of making a car with safety bars instead of doors butno one would like to buy a half car. After many design fails, he came up with a car that only had the essentials. After a few days of planning and research, he found out that the costing of making of this car comes around to Rs. One lakh. Mr. Ratan Tata faced many statements of making the world’s cheapest car but he went ahead with idea. A group of engineers worked together and finally came out with a car that met all the safety requirements of a car and named it Nano.
  8. 8. Page 8 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 Comparisonof Tata Nano with its competitors? Tata Nano Maruti ALTO 800 1. The Nano's trunk is only accessible from inside the car, as the rear hatch does not open, but it eventually received a full hatchback in 2015. 1. Maruti 800 initially had only an opening rear- windscreen, but later got a full hatchback. 2. One windscreen wiper instead of the usual pair 2. Two windscreen wipers. 3. No power steering initially, unnecessary due to its light weight. Added in higher variants in later models. 3. Power Steering only in higher variants. 4. Three lug nuts on the wheels instead of the usual four 4. Four lug nuts per wheel. 5. Only one wing mirror on base models. Higher variants fitted with passenger side ORVM from 2012 onwards. 5. Both side ORVMs in certain variants. 6. Radio or CD player is optional 6. Radio or CD player is optional 7. No airbags on any model 7. no airbag in any variant. 8. 624cc rear engine has 2 bigger cylinders (312cc each) 8. 800cc front engine has 3 smaller cylinders (266cc each).
  9. 9. Page 9 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 9. No air conditioning in base model 9. No air conditioning in base model 10.Front passenger seat same as the driver seat, and the headrests are integrated. 10.Front passenger seat same as the driver seat, but headrests separate. Later models switched to integrated headrests. 11.Thinner 135/70-R12 space saver spare tyre. 11.Full size spare tyre. 12.No external fuel filler cap. Fuel inlet is accessed by opening the front hood. 12.External fuel filler cap. 13.Front doorpower windows only offered on highest variant. PW switches placed on central console rather than on doorpads. 13.Front doorpower windows only offered on highest variant.
  10. 10. Page 10 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 Reasons why Tata Nano failed in the Indian market 1. Giving the car a cheapimage - the car was termed as the “world’s cheapest car” this phrase attracted customers at first but later made them reluctant to buy the car. Tata understood that this phrase had set an image of fragile and unreliable to the car. The company marketed the car in the wrong manner. The car was supposed to be bought by middle and lower class families to replace bikes but it was instead bought by auto drivers to ride it as a taxi. 2. The looks ofthe car - the appearance of the car wasn’t very appealing to the customers as it looked like an auto rickshaw with 4 wheels and a metal cover instead of canvas. Indians are more into looks of something that utility. So even the low pricing of the car didn’t appeal to the customers as it lacked good looks. 3. Negative publicity of the car - the car didn’t perform well as the engine was a 2 cylinder 625 cc engine, it wasn’t even able to run as good as a bike and faced lots of problems as overloading caused the chassis to hit the road and caused poor acceleration. Few of the cars also caught fire due to inefficient cooling systems and air vents, this caused a lot of collateral damage.
  11. 11. Page 11 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 4. Increasing competition of the secondhand market - the cars sold in the second hand market like Renault Kwid, Hyundai Eon, Datsun Go, Maruti Alto, etc. we’re harming the sales of Tata Nano as these cars were available at the same price of Tata Nano in’s the second hand market but offered more safety and features and didn’t look as bad as the Tata Nano, these cars had a proper4 cylinder engine and good acceleration and pickup. 5. Engineering and designing gone wrong - the car lacked basic features that are required in a car like child locks, no central locking, no space for child seats, no power steering, no ABS, etc. the lack of these key features that were available in the competitors of Tata Nano caused a bad responseto the car. 6. Expectationvs. reality - Tata had given the vision of a car that would be affordable and could fit a family of 4. But in reality the car was only initially available for less and it also had lots of difficulty in fitting an Indian family of 4 with ease. The roads of India are very rough and are full of pits and bumps; Tata Nano wasn’t made for Indian roads as it had small wheels and bad suspension. The car also only had a top speed of 105 kmph, which means it cannot be driven above 70 kmph, this made it unsuitable to be driven on highways also.
  12. 12. Page 12 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 7. Wrong product placement - Tata Nano positioned it car to be used largely in rural areas and gave it the name ,”everyone’s car” as it could be easily affordable by anyone, this harmed the profile of the car as no one wanted a car that was said to be cheap, this made the customers more reluctant in buying the car.
  13. 13. Page 13 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 SWOT analysis of Tata Nano Strengths 1. Tata Nano is available at a very affordable price 2. Easy to drive in traffic conditions 3. Innovative engineering of Tata Nano provides better facilities compared to same segment cars 4. Low maintenance and handling costof Tata Nano 5. Good fuel efficiency goes well with Indian audiences 6. When it was introduced it created a huge buzz in the global automobile industry being a ‘commonmans’ car 7. Excellent advertising of the Tata Nano car across TVCs, print media, online ads etc Weaknesses 1. Perceived as a cheap productwhich repels the aspirational customers 2. Setting up of productionplant in WB caused a lot of tension 3. Limiter international presence of Tata Nano
  14. 14. Page 14 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 Opportunities 1. Tata Nano can capitalize on the fact that it is the most affordable car and acquire new customers 2. Increasing per capita income and purchasing capability of potential customer base 3. Promoting CNG model at the earliest and attract the public passenger car segment 4. Increase international market presence especially Europe too boost Tata Nano's business 5. Augmenting the distribution and service network in various countries Threats 1. Increasing fuel costs 2. Competition from other big automobile giants can affect Tata Nano's business 3. Competitive products offering same level features at a lesser price 4. Productinnovations and frugal engineering by competitors 5. Customer perception of a Tata Nano as a cheap car can lead to loss of sales
  15. 15. Page 15 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 Tata Nano Singur Controversy This was the controversy that was generated by land acquisition of the Nano factory of Tata Nano at Singur in Hooghly district, West Bengal The government of West Bengal caused the controversy by using the 1894 land acquisition act. In this, the government has the right to take over the private property for public use and development. They took over 997 acres of land to let Tata build its factory. This project was opposedbythe opposition parties and activists in West Bengal. Many farmers whose land was seized for the factory were displaced; the opposition leader Mamata Banerjee help the farmers get their land back. The plant finally shut down on 3rd October2008 and was shifted to Sanand, Gujrat. The then CM of Gujrat, Shri. Narendra Modi helped Tata to constructtheir plant in Gujrat. The shifting of the whole factory across India caused a huge delay in the release date of the car. It also wasn’t possible to now sell the car at Rs. One lakh as the costing increased. In spite of that, Mr. Ratan Tata promised to sell the car at Rs. One lakh for the customers who had pre-booked and then later on increase the price.
  16. 16. Page 16 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 Conclusion 1. Tata Nano is the world’s cheapest car. 2. It was made affordable for the lower middle class people. 3. The car was turning heads in the beginning but later it was seen as a cheap car and people didn’t prefer this car. 4. It had to face a lot of competition and it offered much less than its competitors for the same price. 5. Tata Motors had done bad publicity and improper placement of the car in the market that have the car a bad name. 6. The car couldn’t perform well on the road as it had a small engine, poorsuspension, small wheels, no safety and basic features and a low top speed. 7. Tata Nano had to shift its factory from West Bengal to Gujrat due to political pressures;this caused a delay in the car production and increased the costing of the car. 8. Though the car was launched to be affordable, it now available starting at Rs. 2.5 lakh, other car manufactures like Renault, Hyundai, Maruti have offered cars at the same price range with more features and safety.
  17. 17. Page 17 of 17 Case Study on Tata Nano Aman Ahuja – A3906415445 Bibliography 1. https://en.wikipedia.org/wiki/Tata_Nano 2. http://www.mbaskool.com/brandguide/automobiles/5019-tata- nano.html 3. http://nano.tatamotors.com/technical-specifications.html 4. https://www.cardekho.com/tata/tata-nano-specifications.htm 5. http://nano.tatamotors.com/genx-nano-technical- specifications.html

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