tata motors nano to roll out

8/17/2019 Tata Motors Nano to Roll Out

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TATA MOTORS NANO TO ROLL OUT

The world’s cheapest car, the widely awaited Nano, will be launched on 23 – 03 – 09. Tata motorswill display the Nano at dealership from the first week of pril, 09 and will accept bookin!s from the

second week of pril, 09. The launch ofNano whose potential to re"olutioni#e the automobile industryhas been widely acknowled!ed in $ndia and abroad, will be one of the bri!ht spots in a bleak landscapefor the !lobal automobile industry.

%ales ha"e plun!ed by double&di!it percenta!es, or worse, in market across the world from '% to(hina. $n $ndia, Nano’s entry mi!ht lead to !rowth in the domestic market. .

The car may also find a niche abroad, a cash&strapped consumers are likely to look for bar!ains.

$n 200), Tata *otors displayed the Nano at the +ene"a *otor show and plans to present theuropean "ersion at the show in *arch, 2009. $t plans to sell Nano in urope at -000 uros.

Tata *otors will roll out 0,000 – )0,000 units of the Nano from another plant in pantna!ar in'ttarkhand till the sanand unit is !eared upto produce 2.-lakh units a year.

Tata *otors has be!an a!!ressi"ely !earin! up its distribution network to sell a car, which will primarily focus on semi&urban and rural areas.

The base "ersion of the Nano, which will be without an .(. will be priced at around /s. one lakhwhile the .(. model will carry a hi!her price ta!.

$t is learnt that Tata *otors inance is workin! on "arious packa!es throu!h %1$ and (1ank, to offer competiti"e interest rates.

ealer of Tata *otors said that company mi!ht take full payment for bookin!. %ona 4oyosteerin! systems e5ecuti"e chairman said. 6Nano is the most awaited car, and, therefore, its launch iswelcomed by the world7.

Questions:

8 (arry out an n"ironment nalysis for Tata *otors.

2 :ith the launch of Nano (ar, will Tata *otors ha"e %ustainable (ompetiti"e d"anta!e ;%( < =ustify your answer.


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A Very Intriguing Package :

$t is not >uite often that a positi"e product feature becomes an albatross around the neck of acompany. ?$@ $ndustries had held sway for o"er two decades in the or!ani#ed $ndian lu!!a!e market onthe basis of the durability of its moulded suitcases. Ab"iously, the customer percei"es "alue&for&money inthe lon!&lastin!, reasonably priced. lfa brand of ?$@ suitcases which sells 8.- lakh pieces a month. 1utthis means that ha"in! bou!ht one suitcase the customer can do with it for se"eral years. *arket research

by the company shows that an a"era!e $ndian family pulls out the suitcase merely for outstation tra"el afew times a year. ence, there is no pressin! need for continual replacement of the old lu!!a!e.

The ?$@ products are made of "ir!in polymer as compound to the recycled !rade $ and $$ polymers used by the unor!ani#ed sector. They are subBected to strin!ent stress tests for >uality control.

?$@ has a presence in a wide ran!e of the market se!ments within a price spectrum of /s. 29- to/s. ,000 a piece. $t is here that the competition from the unor!ani#ed sector hurts the company most.?$@’s economically&priced brand, lfa is widely imitated and sold at much lower prices. This enables theunor!ani#ed sector to typically sell 20 times more than ?$@ can. The lower price threshold seems to be/s. 22- which is nearly impossible for ?$@ to achie"e !i"en its cost structure. $n the /s. 8-00 plus

premium ran!e, ?$@ has to contend with %amsonite which is a formidable competitor.

The ob"ious tactic for ?$@ has been to cut costs. istribution and lo!istics is one area where"aliant efforts ha"e been made at cost reduction. ?$@ has four factories located in the heart of $ndia. Thea"era!e distribution costs come to /s. C to /s. ) a piece. /eduction in cost has been attempted throu!h

distributed manufacturin! by ha"in! "endors makin! the product at different locations, thereby, a"oidin!transportation of hi!h&"olume suitcases across lon! distances and reducin! in"entory build&up in thechannel.

%e"ere pressure on sales has resulted in ?$@ $ndustries offerin! discounts and unwittin!lyenterin! into a disastrous price war. @romotion of a hi!h "isibility product suffered and ad"ertisin!e5penditure has been ruthlessly curtailed from the earlier /s.88 crore to /s.2 crore now. $ts leadad"ertisin! a!ency is T . ction on the promotion front has seen reor!ani#ation of the brand portfolio.$ncidentally, earlier its successful and popular 4al bhi aB bhi campai!n ser"ed to reinforce its durabilitytheme.

There are se"eral roadblocks that the company has to ne!otiate. $ncrease in population, risin! propensity of $ndians to tra"el, and the insatiable thirst of customers for state&of&the&art technolo!ical products with newer desi!ns and inno"ation, all at an affordable price are the opportunities and challen!es before the company. $ntroduction of new brands, *antra and %kyba!s, product ran!e di"ersification toinclude children’s ba!s and ladies’ ba!s, strate!ic alliance with urope’s leadin! lu!!a!e&maker – elseyare some of the steps taken by the company.

Det, cau!ht in its self spun web of past successes, ?$@ is today faced with an uncertain future.


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Question :

ow should the ?$@ $ndustries !et out of the bind that it finds itself in < Autline the contours of themarketin! plans and policies that ?$@ needs to formulate and implement <

Incentives at Sagar Ratna

%ekhar and sa!ar owned and operated %a!ar /atna otel since it opened in 899-. 1y 200-, the hotele5panded its operation considerately and now boasts of ha"in! four hotels in maBor commercial locationin elhi.%ekhar was inchar!e of human resources,finance and marketin!. %ankar ran hotel operations,includin! house keepin!, the !rounds and fools and be"era!es.%ekhar often commented,E$ reward thecontributions of people, not their hours of workE. %ankar was in complete a!reement with his brother inthis re!ard. This philosophy found e5pression throu!h a "ariety of incenti"es introduced by %ekharhimself for impro"in! the li"in! standards of workers. lthou!h, he stron!ly supported such incenti"eschemes, %ekhar hired a local consultin! firm to comment up on his pro!ramme and offerrecommendationFs for further impro"ement.

To assist the consultin! firm, the brothers wrote down the maBor features of each incenti"es pro!rammethusG

& 5ecuti"es !et one percent of profit of each >uarter.

& :hen the occupancy le"el reaches 9- percent, hourly employees !et a complementary lunch in thehotel.

& ouse 4eepers are paid the minimum wa!e plus /%.-0 each cleaned room that meets the hotelsF8-&poinchecklistF.

& /eser"ations clerks are also paid the minimun wa!e but !et /%.- for each reser"ation they book.

Questions:

;a :hat problems would you see with incenti"es for

8. 5ecuti"es

2. ourly workers3. ousekeepers and reser"ationists.

;b $f you were a member of the consultin! team, wthat incenti"e would you recommend for each !roup.

Case study:


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*T is the latest addition in telecom sector offerin! ( * ser"ice. $ts main competitors are1%NH, T T $ndicom, reliance and "ir!in. e"ise a launch strate!y with specific focus on producta"ailability and more "isibility also chart out a plan to compete with the leaders.

tata motors nano to roll out

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