final submission.doc

7/27/2019 Final Submission.doc

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Research

Methodology Project

TATA NANO

Prashanna Jhawar 2009A19

Saurabh Singh Parihar 2009A20

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Table of ContentsTable of Contents....................................................................................................... 3

RESEARCH OBJECTIVES.............................................................................................. 4

EXPLORATORY RESEARCH..........................................................................................5

SECONDARY DATA......................................................................................................6

QUESTIONNAIRE DESIGN............................................................................................ 8

QUESTIONNAIRE....................................................................................................10

SAMPLING.................................................................................................................13

METHOD OF ANALYSIS..............................................................................................14

ASSIGNING WEIGHTAGE TO EACH SRO.................................................................16

................................................................................................................................. 17

FINAL CONCLUSION.................................................................................................. 18

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RESEARCH OBJECTIVES

PRO To determine the feasibility of Tata Nano as a replacement of two wheelers being used byyoung male population (20-35 age group) in Pune.

SRO

1:

To determine whether the people will prefer to drive a two wheeler or four wheeler in Pune

considering the Infrastructure of Pune.

SRO To determine whether the difference in mileage of Tata Nano over 2-wheelers is affordable

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2: to males in the age group of 20-35 in Pune.

SRO

3:

To determine whether there is a significant increase in safety provided by Tata Nano over

two wheelers.

SRO 4:

To determine whether people, while purchasing a vehicle, areWilling to pay more for a car than a two wheeler.

SRO

5:

To determine the Social Factors associated with the purchase of

Tata Nano.

EXPLORATORY RESEARCH

OBJECTIVE:

To discover the general nature of the problem and the variables that relate to it on the basis of secondary

data, convenience or judgement samples, small scale surveys or simple experiments, case analyses etc.

Basically it is done to have more precise and accurate understanding of the secondary research objectives

and also helps in identifying some important factors that have been missed while identifying secondary

research objectives.

In this case, exploratory research have been done by making a small questionnaire and then personally

asking those questions to a sample of youngsters in Pune and getting the precise answers.

From the exploratory research we got the following information from the respondents:-

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The parameters looked out in respondents that influence the shift from a two wheeler to a Tata

Nano are Mileage, Driving Expertise, Climatic Expertise, Annual Salary, Infrastructure in pune,

Safety Standards and ease of usage.

Most of the respondents (70 %) who are already 2-wheeler users welcomed the introduction of

TATA Nano as peoples car.

Students (age 19-25) studying in various colleges in Pune formed a large sample of ourrespondents coupled with young IT professionals.

Students weighed a lot of importance to travelling places along with their group in a car which is

not very costly and which satisfy their basic needs.

The second set of People comprised of young recently married couples (age 25-35).

Even for the newlywed couples (income range Rs.100000-300000 per year) who had a bike, it

was more of a matter of self esteem to move around in Nano rather than a bike.

Good Promised mileage and safety standards by the company are added incentives for

influencing the shift of the People.

SECONDARY DATA

Pune is one of the most rapidly motorizing cities in the country. Over 1.5 million vehicles are currently

registered with the Regional Transport Office (RTO) at Pune, with another 600 getting registered

every day. Two-wheelers form the bulk of these there were over 1.1million two-wheelers in Pune

in 2007.

Due to the appalling state of public transport in the city, 13, 12,213 Puneites prefer

travelling on bikes, scooters

with the growth in the city's population, the number of two-wheelers in Pune is also increasing at an

astounding rate. This is evident from the data available at the Regional Transport Office.

According to RTO records, 97,542 new two-wheelers have been introduced on the roads of Pune.

Lakshman Darade, deputy regional transport officer, said, "This year 1,23,943 vehicles have been

introduced on city roads, thus taking the total number of motor vehicles plying on city roads to

17,62,730." While Prashant Inamdar, president of Pedestrians Association, said, "Out of 1,23,943 newly

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added vehicles, 97,542 are two-wheelers."

Jugal Rathi, president of PMP Pravasi Sangh, said, "It is not that people are going for two-wheelers by

choice. Actually, they don't have any other option as the frequency of Pune Mahanagar Parivahan

Mahamandal Ltd (PMPML) buses is low."

He added that on some routes, commuters have to wait for as long as an hour to board a bus. "

However, denying any lacunae in the services rendered by the public transport system, D A Pardeshi,

PRO PMPL, said, "The increase in the number of two-wheelers is due to the attraction bikes hold for

youngsters." (Source: http://www.mid-day.com/news/2009/jun/110609-Scooters-Bikes-Motor-Cycles-

Pune-news-Bus-transport.htm)

Buyers excited

Meanwhile, Puneites can't wait for the car to go on sale. "I will surely go for the Nano because Pune's

roads are becoming unsafe for two-wheelers day by day.

Also, with Nano's price is a huge attraction," said Medha Kulkarni, who works with a nationalised bank.

Added Sandip Warke, a pharmaceutical trader, "I am considering buying the Nano, as it's only a little

more expensive than a bike and I will be able to travel with my family very safely."

Apart from the dealers, Nano's booking forms, which cost approximately Rs 300, will be available at all

State Bank of India branches, Croma and Westside stores. (Source: http://www.mid-

day.com/news/2009/mar/230309-Tata-Nano-Pune-customers-Tata-Motors-Pratham-Automobiles-Pandit-

Automotive.htm)

Will Tata Nano revolutionise personal transport?

Nano is expected to change the automobile market in India, which should ideally mean new strategies for

competitors. This car is actually a bridge between the automobile market and the two-wheeler market,

says Ranjit Shastri, MD, Psi, a consulting firm. This new market that Nano will create will not eat into the

market of other car segments, but will affect the two-wheeler market drastically.

The family two-wheeler, which is in the range of 75-125cc, costs Rs 35,000-50,000. This segment

accounts for 92% of the two-wheeler market in terms of sales. With the launch of Nano, the spill over will

happen from this two-wheeler market to Nano. Two-wheeler manufacturers have realised it and BajajAuto and Hero Honda are making plans to enter into this new segment.

Earlier, Maruti 800 has been the essential small car with a price tag of Rs 2 lakh and all aspiring car

buyers have preferred it as their first car. Today, that may change to a certain extent. But this will in no

way harm Maruti Suzuki or Hyundai Santro as owning a car is still aspirational and anyone who wanted

to buy a car above the 3,400 mm series will continue to do so.

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Maruti 800 held a 30% market share in terms of sales in 2001 among all passenger cars. Today, it has

fallen to a mere 5%. Maruti has laid stress on Alto while relegating 800 to the background, and it was a

calculated move. Thus, they never wanted to be a part of the lower end segment of the car market. Same

goes for Hyundai Santro.

The launch of Nano creates a market for the small car which may allow competitors to enter this marketwith new models but should not harm their existing strategies.

At most, Maruti may want to launch an exchange offer for 800 and give an attractive price for 800

buyers to migrate to Alto. They should then refurbish and put these used 800s in the market for Rs

70,000. This should act as a drag on some of the velocity that Nano is going to pick up, says Shastri.

For other players, there are two strategies: First, get into this segment yourself. Second, cut down on

operational expenses and make existing products available at a cheaper price. However, sudden price cuts

will not be viable as a strategy.

The competition will have to wait and watch how Nano is received, what all has gone into it to make it so

affordable and then try and work a strategy around it. Even if Nano manages to convert 10% of existing

the two-wheeler marketwhich is close to 900 millionNano will have almost 50% market share of the

car market. But that is provided that Nano remains the only car in that segment. Chances are this will

become the hotbed for competition.(source:

http://economictimes.indiatimes.com/articleshow/2691432.cms)

QUESTIONNAIRE DESIGN

SRO - 1: To determine whether the people will prefer to drive a two wheeler or four

wheeler in Pune considering the Infrastructure of Pune.

Information Needed:

Width of Roads

Parking Space Available

S.No Information Needed Respondents Method

1. Width Of Roads Users Structured / Indirect / Personal

2. Parking Space Available Users Structured / Indirect / Personal

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SRO - 2: To determine whether the difference in mileage of Tata Nano over 2-wheelers isaffordable to males in the age group of 20-35 in Pune .

Information Needed:

Mileage of car

Mileage of two wheeler


1. Mileage of car Dealers

Users

Structured / Direct/ Mail

Structured / Indirect/ Personal

2. Mileage of two wheeler Users Structured / Direct/ Personal

SRO - 3: To determine whether there is a significant increase in safety provided by Tata

Nano over two wheelers.

Information Needed:

Safety by two wheeler

Safety by Tata Nano


1. Safety by two wheeler Users Structured / Direct / Personal

2. Safety by four wheeler Users Structured / Direct / Personal

SRO - 4: To determine whether people, while purchasing a vehicle, are willing to pay

more for a car than a two wheeler.

Information Needed:

Price of two wheeler

Budget for a two wheeler

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Budget for a car.


1. Price of a two wheeler Users Structured / Direct / Personal

2. Budget for a two wheeler Users Structured / Direct / Personal

3. Budget for a car. Users Structured / Direct / Personal

SRO - 5: To determine the Social Factors associated with the purchase of Tata Nano.

Information Needed:

Status Symbol

Usage of Tata Nano as a Taxi


1. Status Symbol Users Structured / Indirect / Personal

2. Usage of Tata Nano as a Taxi Users Structured / Direct / Personal

QUESTIONNAIRE

1) Please mention your sex?a) Male b) Female

2) What is your age?

a) Less than 20 years b) between 20-35 years

c) More than 35 years

--------------------------------------------------------------------------------------------------------------------------------------------

3) Which of the following vehicles do you have?

a) Two Wheeler b) Car

c) Both d) None

What is the mileage you expect from a two wheeler?

a) 15-30 km/l b) 30-40 km/l

c) 40-50 km/l d) more than 50 km/l

e) Not Applicable

What is the mileage you expect from a Car?

a) less than 15 km/l b) 15-20 km/l

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c) 20-25 km/l d) more than 25 km/l

e) Not Applicable

4. Approximately, how much distance do you travel daily, where you may need a vehicle?

a) 0-5 km b) 5-10 km

c) 10-20 km d) more than 20 km

5. Approximately, how much do you spend monthly (in Rs.)?

a) Less than 5000 b) between 5000-10000

c) Between 10000-20000 d) more than 20000

6. What is the amount of money that you would like to spend on a purchase of a car?

a) Less than 60000 b) between 60000 100000

c) Between 100000 150000 d) more than 150000

7. What is the amount of money that you would like to spend on a purchase of a two wheeler?

a) Less than 35000 b) between 35000 60000

c) Between 60000 1 Lakhs d) more than 1 Lakhs

8. Do you enjoy driving a car in Pune? (Considering the traffic and parking problems here). Please tick one.

a) Very Easy [ ]

b) Easy [ ]

c) Average [ ]

d) Difficult [ ]

e) Very Difficult [ ]

f) Never driven a car in Pune [ ]

9. Do you enjoy driving a two wheeler in Pune? (Considering the traffic and parking problems here). Please tick

one.

a) Very Easy [ ]

b) Easy [ ]

c) Average [ ]

d) Difficult [ ]e) Very Difficult [ ]


10. Is driving a carsafe in Pune,from accidents point of view? Please tick one.

a) Very Safe [ ]

b) Safe [ ]

c) Average [ ]

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d) Dangerous [ ]

e) Very Dangerous [ ]


11. Is driving a two-wheelersafe in Pune,from accidents point of view? Please tick one.

a) Very Safe [ ]

b) Safe [ ]

c) Average [ ]

d) Dangerous [ ]

e) Very Dangerous [ ]


12. Rate the following in order of importance from 1 to 7 with 1 being most preferred and least preferred, while

purchasing a vehicle ?

a) Price of car [ ]

b) Safety provided by car [ ]c) Power of car [ ]

d) Traffic in the city [ ]

e) Style of the car [ ]

f) Mileage by the car [ ]

g) Service Costs associated with [ ]

13. Please rate the followingstyle attributes in a Car in order of your preference?

a) Colour 1 __ 2 __ 3 __ 4 __

b) Outward Appearance 1 __ 2 __ 3 __ 4 __

c) Size 1 __ 2 __ 3 __ 4 __

d) Interiors 1 __ 2 __ 3 __ 4 __

14. Please rate the following items, in order of your preference, considering thesocial status they carry?

a) Plasma TV 1 __ 2 __ 3 __ 4 __ 5 __ 6__

b) Laptop 1 __ 2 __ 3 __ 4 __ 5 __ 6__

c) Mobile phone 1 __ 2 __ 3 __ 4 __ 5 __ 6__

d) Tata Nano 1 __ 2 __ 3 __ 4 __ 5 __ 6__

e) Area of residence 1 __ 2 __ 3 __ 4 __ 5 __ 6__

f) Two-Wheeler 1 __ 2 __ 3 __ 4 __ 5 __ 6__

15. Will there be traffic problem with the introduction of Nano in Pune?

a) Yes b) No

c) Cant say

16. Do you think TATA Nano as a peoples car?

a) Yes b) No

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c) Cant say

17. How will the owner of TATA Nano feel, if Nano is used as a taxi?

a) Embarrassed b) Dont care

c) Cant say

SAMPLING

The steps involved in sampling are

Population: The population for this research is the population of males in Pune in the agegroup of 20-35.

Sample frame: Name list of all males in the age group of 20-35 and living in Pune.

Sample unit: The population of Pune mainly includes students and software professionals and

small businessman.

Sampling Method: Probability sampling, members will be selected by chance.

Sample size: Sample Size that we have taken for our research is 100.

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METHOD OF ANALYSIS

Our data analysis involved converting a series of recorded observations across all SROs and inferences

were drawn about the preference of people for purchase of a Tata Nano over a two wheeler.

We have usedSPSS statistical software and the CHI Square cross tabulation toolto analyse the data.

Below is the analysis of each SRO using the software tool. The analysis includes the NULL and

ALTERNATE hypothesis.

SRO 1: To determine whether the people will prefer to drive a two wheeler or four

wheeler in Pune considering the Infrastructure of Pune.

Null Hypothesis (H0): People will prefer two wheeler over four wheeler to drive at 75% confidence

interval.

Alternate Hypothesis

(H1):

People will not prefer two wheeler over four wheeler to drive at 75%

confidence interval.

Result: H0 not rejected. P-Value = 0.391

Conclusion: We can consider that only 39.1% people will prefer to drive a four wheeler

over two wheeler, considering the parking issues and width of roads.

Null hypothesis (H0): Introduction of Tata Nano in Pune will not cause a significant increase in

traffic, at 75% Confidence level.


(H1):

Introduction of Tata Nano in Pune will cause a significant increase in traffic, at

75% Confidence level.

Result: H0 rejected. P-Value = 0.072

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Conclusion: We can consider that only 7.2% of people will prefer to drive a four wheeler

over a four wheeler, considering the traffic in mind. Only 7.2% will prefer Tata

Nano

SRO 2: To determine whether the difference in mileage of Tata Nano over 2-wheelersis affordable to males in the age group of 20-35 in Pune.

Null Hypothesis (H0): Mileage has no significant impact on the purchase decision of a person, when

he has to decide between a car and a two wheeler, at 75% Confidence level.


(H1):

Mileage has significant impact on the purchase decision of a person, when he

has to decide between a car and a two wheeler, at 75% Confidence level.


Conclusion: We can say with only 21.9% confidence level that people will not consider

mileage while buying a vehicle. Only 21.9% will prefer Tata Nano.

SRO 3: To determine whether there is a significant increase in safety provided by TataNano over two wheelers.

Null Hypothesis (H0): There is no significant increase in safety provided by a car over a two wheeler,

at 75% Confidence level.


(H1):

There is a significant increase in safety provided by a car over a two wheeler,

at 75% Confidence level.


Conclusion: We can consider that 87% of people will consider car as a safer option over

two wheeler. 87% will prefer Tata Nano.

SRO 4: To determine whether people, while purchasing a vehicle, are willing to pay

more for a car than a two wheeler.

Null Hypothesis (H0): Price does not have a significant impact on the purchase decision of a person,

when he has to decide between a car and a two wheeler, at 75% Confidencelevel.


(H1):

Price has a impact on the purchase decision of a person, when he has to decide

between a car and a two wheeler, at 75% Confidence level.

Result: H0 not rejected. P-Value = 0.822

Conclusion: We can consider that 82.2% people will be willing to pay more for a car over atwo wheeler. 82.2% will prefer Tata Nano.

SRO 5: To determine the Social Factors associated with the purchase of Tata Nano.

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Null Hypothesis (H0): Status symbol associated with Tata Nano will not cause a significant impact on

its purchase, at 75% Confidence level.


(H1):

Status symbol associated with Tata Nano will cause a significant impact on its

purchase, at 75% Confidence level.


Conclusion: We can consider that only 11% of people feel that social status does not have

an impact on the purchase of a vehicle. Only 11% will prefer Tata Nano

Null Hypothesis (H0): Tata Nano, if used as a taxi will not have any effect on the owner of Nano, at

75% Confidence level.


(H1):

Tata Nano, if used as a taxi will have any effect on the owner of Nano, at 75%

Confidence level.

Result: H0 rejected. P-value = 0.23

Conclusion: We can consider that 23% of people will prefer Tata Nano irrespective of it

being used as a Taxi. Only 23% will prefer Tata Nano.

ASSIGNING WEIGHTAGE TO EACH SRO

Through our survey we asked our respondents to rate the importance of the following characteristics,

when they decide to buy a car.

Price

Safety

Mileage

Infrastructure and Traffic issues

Social Factor associated with a Tata Nano

We have used the response to assign weight age to the factors mentioned above, the method we used to

analyse the data is specified below.

Factor V.

Importan

t

(5 points)

Importan

t

(4 points)

Average

(3points)

Not

Important

(2 points)

Least

Important

(1 point)

Sum

product

Final

Weight

age

Price

13 4 7 5 3 115

0.26806

5

Safety

10 2 6 8 6 98

0.22843

8

Mileage

2 3 8 9 10 69

0.16083

9

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Infrastructur

e and Traffic

issues

13 10 7 12 74

0.17249

4

Social Factor

associated

with a Tata

Nano 1 5 5 8 13 73

0.17016

3

Total 429

Now we will multiply the P-Values obtained from the CHI Square analysis with the calculated

weightages as shown in the above table.

Weight ages P-Values Sum-Product

SRO 1: Infrastructure

Traffic

0.085082

0.085082

0.391

0.072

0.0332669

0.006125874

SRO 2: Mileage 0.172494 0.219 0.037776224

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SRO 3: Safety 0.228438 0.870 0.198741259

SRO 4: Price 0.268065 0.822 0.22034965

SRO 5: Social Factor

Taxi

0.08042

0.08042

0.110

0.230

0.008846154

0.01983683

Total 1.00 0.52494289

FINAL CONCLUSION

Considering all the factors we have analysed in our research. We have arrived at a conclusion that 52.5%

of the males in the age group of 20-35 and living in Pune will prefer to buy a Tata Nano over a twowheeler.

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