Project Report

On

New Produt Development With

Tata Nano

And

Comparitive Study On Maruti 800

Submitted To Submitted ByMr. Rajiv Bhandari Priyank Mehrotra

BBA VI Sam. R No. 915605

PREFACE

1

This is the specialization project on a

study on new product development for Tata Nano

along with a comparative study between Tata Nano

and Maruti 800. The objective of this study is to gain

knowledge about how Tata brought this new product

i.e., Nano up to the development stage and finally

going to launch it on 23rd of March.

During the project I researched on how

Tata developed Nano costing Rs 1 lakh and what will

be its effects. This study also includes comparison

between Tata Nano and Maruti 800. A survey was also

done for understanding consumer buying pattern and

preferences.

Thus, this study is based on new

product development in marketing for Tata Nano.

ACKNOWLEDGEMENT

2

I am thankful to INVERTIS INSTIUTE OF

MANAGEMENT who provided me with the opportunity

for carrying out the study.

Under their valuable guidance, constant

interest and encouragement, who have devoted her

ever-precious time from their busy schedule and

helped me in completing the project. Her co-operation

was not only useful for this project but will be a

constant source of inspiration for me in the future.

I express gratitude to various faculty

members especially Rajeev Sir for his valuable

guidance which was a good learning experience in

order to make my efforts successful.

Special, continual assistance while

collecting the data was provided by the respondents. I

wish to acknowledge my special thanks to them for

their help and cooperation in order to complete this

project.

I am also thankful to those who have

helped me intellectually in preparation of this project

directly or indirectly.3

I am deeply indebted to the various

sources of information from relevant sites from

internet and books and newspapers which helped me

a lot in my study and helped me to learn a lot.

Table of contents:

Sr. No. Subject Pg. No     

4

1 Objective of research  6     

2 Methodology of research  7     

3Introduction to the subject –new product development  8

     

4 Introduction to Tata Nano  20     

5Tata Nano and new product development  26

     

6 Some myths about Nano  45     

7Comparison between Nano and Maruti 800  50

     8 Data collection method  57

     

9 Analysis of data collection  60     

10 Various charts  62     

11 Some feedback about Nano  68     

12 Conclusion  71     

Research objectives

5

o To study about how a new product- Tata Nano

was developed based on marketing theory of

“new product development.”

o To study about what made possible for Tata to

develop and produce a car for just Rs. One lakh.

o To study the objectives and target customers of

Tata’s one lakh car

o To study and compare between Tata Nano and

Maruti 800

o To study on customers buying behavior and

preferences and views about Tata Nano and

Maruti 800 by various methods of data collection.

RESEARCH METHODOLOGY

This chapter describes the methodology of the study. This project is

based on information collected from primary sources. After the detailed

6

study, an attempt has been made to present “A STUDY OF NEW

PRODUCT DEVLOPMENT WITH TATA NANO AND

COMPRATATIVE STUDY ON MARUTI 800”. The data had been

used to cover various aspects like consumer’s preference and customer’s

satisfaction regarding “TATA NANO AND MARUTI 800”. In

collecting requisite data and information regarding the topic selected, I

went to the residents of BAREILLY and collected the data.

Survey design:

The study is a cross sectional study because the data were collected at a

single point of time. For the purpose of present study a related sample of

population was selected on the basis of convenience.

Sample Size and Design:

A sample of 100 people was taken on the basis of convenience. The

actual consumers were contacted on the basis of random sampling.

Research Instrument:

This work is carried out through self-administered questionnaires. The

questions included were open ended, dichotomous and offered multiple

choices.

Introduction To New Product Development

Meaning Of Product:

7

E.g.:- milk, computer, shoes, service after

sales, railway services etc. a product can be divided into

two categories

o Tangible goods

o Intangible goods

Tangible products are known as goods that

can be touched, felt and seen. E.g.:- computer, mobile

phone etc

Intangible products are known as services

that cannot be touched and seen as the customer can

feel and experience only after utilizing it. E.g.:- service

after sales

New Product Development:

8

A product can be considered new under the

following situations:-

New-to-the-world products

New product lines

Additions to existing product lines

Improvements and revisions of existing

products

Repositioning

Cost reductions

Stages Of New Product Development

9

Before the introduction of a product

into the market, it goes through several stages of

development. These stages are known as stages of new

product development. It includes the following:

Idea Generation:

Companies seek new ideas to enhance the

performance of the existing products and to innovate new

ideas. This stage is called idea generation stage. There

are many sources for idea generation. It may be from

customers, dealers etc.

Employees throughout the company

can also be a source of idea. Toyota claims that its

employees submit two million ideas annually over 85% of

which are implemented.

Companies also find good ideas by

researching competitor’s products and services. They can

find out what the customers like or dislike about their

competitor’s products. Ideas can also come from

investors. External research, surveys industrial

publications research and development etc.

10

But the main source of idea generation

is the customers by their grievances and complains and

feedback. However, although ideas can flow from many

sources, it is not feasible to implement all the ideas

generated due to lack of time and capital.

Idea Screening

The main purpose of idea generation is to

collect a larger number of ideas. However, not all ideas

can be commercially viable. Therefore, the companies

filter the less viable ideas with the help of systematic

process. Companies can use various parameters to

screen the ideas such as market size, technical

capabilities, potential competition etc.

11

Addressing the following issues will also

help the companies to analysis the attractiveness of

ideas.

Whether the product idea match the

existing products of the company.

The degree to which the new product

can cannibalize the sale of the existing

product.

Company’s ability to produce and

market the product.

Buying behavior and the probable

changes in the environment.

While screening the ideas, an

organization may commit two types or errors.

Drop error where the firm rejects a very good idea.

Cro error where a company selects a poor idea.

12

Concept Testing And Development:

All ideas that survive in the process of

screening will be studied in details. They will be

developed into mature products. At this stage, the idea is

submitted for the external evaluation to get a feedback

from the market. It helps a firm are organization to collect

important information like customers initial reactions

towards the product development. During this stage, new

product idea is described in the form of one or more

benefit that is then presented to a sample of potential

customers for their reactions.

Marketing Strategy:

Following a successful concept test, the new

product manager will develop a preliminary strategy plan

for introducing new product in the market. The plan

consists of three parts.

The first part describes the target market size,

structure and behavior for the first few years.

The second part outlines the planned price

distribution strategy and marketing budget for the

1st year.

13

The third part of marketing strategy plan describes

the long run sales and profit goals and the marketing

mix strategy over time.

Business Analyses .

After management develops the product

concept and market strategy, it can evaluate the

business attractiveness. Business analyses are the first

in-depth financial evaluation of new product to be

developed. Here management needs to prepare sales

cost and profit projections to determine whether they

satisfy company objectives. If they do, then concept can

move to the development stage. SOWT analysis will be

conducted at this stage by the organization. It also

includes the following:

Total sales estimation:-

These are the sum of estimated first- time

sales, replacement sales and repeat sales. Its method

14

depends upon whether the product is one time

purchase(an engagement ring), an infrequently

purchased products like toaster, auto mobile etc. or a

frequently purchased products like consumer and

industrial non durables.

Estimation costs and profits .

The R&D, manufacturing, marketing and

financial departments estimates the costs. The

profitability of the new product is estimated through

various financial tools. The simplest technique is the

breakeven analysis in which the management estimates

how many units of the product the company would have

to sell to break even with the given price and cost

structure. If the management believes that sales could

easily reach the break even number, it is likely to move

the project into development stage.

Product Development

15

In this stage, detailed technical analysis

is conducted to know whether the product produced at

costs is low enough to make the final price attractive to

the customer.

Here a working model or a prototype is

developed to disclose all tangible and intangible

attributes of the product. A product protocol is prepared

which is a detailed downiest containing the important

attributes that are expected in the product. Once the

protocol has been developed, it is handed over to the

research the development department to develop the

prototype of the product.

Test Marketing:

16

The test marketing is the stage where

the product is introduced in a few selected cities. During

this stage, the company has to fate the following

expense:

High advertisement

High manufacturing cost.

High distribution cost etc.

For testing the product, marketer needs

to make the decision on the following issues.

The no. of cities in which the product is to be tested.

Geographic location of the cities.

Time to carry ort test marketing

Through this exercise, company can

know the customers response, feedback, suggestions,

complaints and any other changes required to be done

for product modification.

After successfully laughing the product

in selected cities the company launches the new product

in all other cities.

There are certain methods of product

testing.

17

Alpha Testing

In this method, a group of target audience is

selected from the employees of the company.

Beta Testing:

It is carried out at the customer’s site.

Generally, it is applicable for industrial products where

the customization takes place.

Gamma Testing:

It is carried out on a long term basis where

the customers uses the product extensively and gives

response after a long period of time. Say six months.

18

Commercialization:

The results of the test marketing help

marketers to decide the changes that are needed in the

marketing mix before entering into the market. It also

helps the marketer to decide the amount of production

distribution strategy, selling efforts and other issue like

providing guarantees, service after sales etc. the product

enters the market during the commercialization stage.

19

Introduction To Tata Motors:

o Tata Motors was established in 1945,

when the company began making

trains.

o It has its manufacturing base in

Jamshedpur, Lucknow, Pune and soon

one more plant established at Singur,

West Bengal.

o Product Manufactured - Passenger Cars

and commercial vehicle

o Installed Capacity - 350,000-400,000

vehicles a year

o Investment - Rs 2,500 crore (Rs 25

billion)

o Turnover - $21.9 billion (Rs 967,229

million)

o Employees - 2,46,000/22001

o Tata Motors had created the wealth Rs.

320 billion during 2001-2006 and stood

among top 10 wealth creators in India.

20

Tata Nano - ONE LAKH CAR

PROJECT “People’s Car”

“A promise is a promise,” said Rattan

Tata, Chairman, Tata Motors, on 10th January, 2008,

when the Nano was first displayed at the Auto Show in

Delhi. The Nano project didn’t grab the attention of only

Indians; the entire world had their eyes glued to the

world’s cheapest car.  

A truly People’s Car, this time is from

India. Though the dealer price is Rs. 1 lakh, the price on

road, when it will be launched, will reach around Rs.

1,25,00 but it will be still more affordable and will be

more eco-friendly than most other cars giving a mileage

of around 23km/liters. The price of the car is such that a

lot of rich and HNIs, if interested, can buy the car just

by a single swipe of their credit cards.

Providing a car worth rupees one lakh car

was the dream of the chairman of Tata motors Mr.

21

Rattan Tata. And with high qualified IT skills people he

has shown the Indian talents to whole the world.

Idea conceived by - Rattan Tata

Cost of development - 1700 crores

Manufacturing cost

(excluding dealer margin and taxes)- Rs 65,000

per unit

Development of Design - India

Time for designing the car - 4 years

Team - A team of 150 engineers , everyone

below age 28

Biggest hurdle - To make a car cheap car

without Compromising design

May western countries as well as many foreign

countries have accepted Indian IT skills.

22

Details Of Nano

Specs:

Engine: 624 cc / 33 bhp

4 door, 5 seater (and yes 4 Wheeled too)

Rear Engine

Weight: 600 kgs

Mileage - 22-23 km/liter

Variants:

Standard

Deluxe (with AC)

Future:

Diesel Variant

Exports outside India or assembly plants outside

Comparison

8% less in length (bumper to bumper) with respect

to Maruti 800 21% more in inner space with respect

to Maruti 800

Looks:

Front side looks more like Matiz (or Spark as we

23

now call it)Back side looks more like India with

those long tail lights.

Insight:

People often criticize something that is making

waves everywhere. This has also been the case

with Tata Nano. Competitors, safety regulators,

environmentalists and most others conceived the

problems that India will face, when such a car is

available, much before the actual launch of the car.

This will result into:

OLD GENERATION NEW GENERATION

24

SOWT Analysis

25

STRENGTH

Brand name TATA

Cost price low

Fuel efficient

Safe

OPPORTUNITIES

Large market for

selling

Awareness in the

market

First car in low range

Can hit in global

market

WEAKNESS

Low power

Not a status symbol

Delay in manufacturing

Limited features

THREATS

Company rival

Not sure to hit in rural and semi-urban areas

26

New Product Development And Nano

As seen before, A product can be considered

new under the following situations:-

New-to-the-world products

New product lines

Additions to existing product lines

Improvements and revisions of existing

products

Repositioning

Cost reductions

As far as Nano is concerned, it falls into new

to the world products in the context that it has made a

history for the cheapest car ever made without

compromising on quality. I.e. best way value analysis.

It can also be considered as new product in

the since of cost reduction as it’s the first time in the

history that such a cheap car is produced.

The story of the Nano is not confined to its

impact on the auto industry. It's a tale that illuminates

27

the India of today—an eager, ambitious nation with a

combination of engineering talent, a desire for low costs

and value, and the hunger of young managers looking to

break from a hidebound corporate environment. Indeed,

the team that worked on the Nano—on average aged

between 25 and 30—has helped to flatten Tata Motors'

stodgy, multilayered management structure, which has

resulted in an unexpected side-benefit called

"organizational innovation".

28

Idea Generation And NanoA dream is born –

Says, “I observed families riding on two-

wheelers -- the father driving the scooter, his young kid

standing in front of him, his wife seated behind him

holding a little baby. Add to that the slippery roads &

Night time too. It is downright dangerous. It led me to

wonder whether one could conceive of a safe, affordable,

all-weather form of transport for such a family.”

So when Tata Motors needed someone to

take charge of the company's most ambitious plan yet to

build the world's cheapest car ever Ravi Kant, who by

then had become the company's managing director,

again turned to Wagh. Wagh remembers what he learned

marketing the little truck. "People want to move from

two-wheelers to four-wheelers," he says. "Today they

can't afford it."

29

More and more can, but Indian car buyers

today represent a tiny slice of a potentially giant market

India has just seven cars per 1,000 people. India's auto

industry has grown an average of 12% for the past

decade, but just 1.3 million passenger vehicles were sold

in India in the fiscal year ending March 2006. That means

a billion Indians buy about the same number of cars in a

year as 300 million Americans buy in a month.

If four wheels cost as little as two wheels,

that could change fast. About 7 million scooters and

motorcycles were sold in India last year, typically for

prices between 30,000 rupees and 70,000 rupees, about

$675 to $1,600. Tata is targeting a price of 100,000

rupees one lakh, in Indian terms of measurement or

about $2,500 at current exchange rates, for its small car.

That sounds impossibly cheap in the West but remains

three times higher than India's annual per capita income.

The average pay for factory workers at Tata Motors is just

$5,500 a year.

30

Idea screening

The next step was the screening of idea.

How is this dream possible? What should they make?

A scooter with two extra wheels at the back for

better stability?

An Auto-rickshaw with four wheels?

A three wheeled car like a closed auto- rickshaw??

A four wheeled car made of Engineering Plastics?

A Four wheeled rural car?

Rolled up Plastic curtains in place of windows?

Openings like Auto rickshaws from the side

A four wheeled open car with safety side bars?

But the market wanted a car and if they build a people’s

car it should be a car and not something that people

would say,“ Ah! That’s just a scooter with four wheels or

an auto-rickshaw with four wheels & not really a Car.”

Trying to build a car cheap enough for

motorcycle buyers seems to make sense now but seemed 31

crazy several years ago when Rattan Tata, longtime

chairman of Tata Motors and scion of the nation's giant

Tata Group conglomerate, first mentioned his dream of

building a one-lakh car in 2003. "They are still saying it

can't be done," he says, insisting that it can and will.

"Everybody is talking of small cars as $5,000 or $7,000.

After we get done with it, there will hopefully be a new

definition of low-cost."

Concept Testing And Developing

32

Before starting the project, Wagh did

something no one at Tata Motors ever had: He talked to

customers. The three-wheeler men inevitably insisted on

a cheap, dependable truck that could go from village to

market carrying, say, a ton of onions or potatoes, one

night, as sunset approached, Wagh stuck with one

rickshaw driver. He says, "I kept asking the question.

Why? Why? Why do you want a four-wheeler?" Wagh

remembered. Finally, he got the real answer. It turned

out it wasn't really a problem of transportation of

vegetables “If I had a four-wheeler, I would have better

marriage prospects in my village," the young man said.

Drivers of three-wheelers are looked down upon in India.

Wagh realized that four wheels had emotional, not just

practical, appeal.

Thus the new product was now to be developed.

But what type of product?

33

The car to cost Rs. 1 lakh on road.

The car should be built on a different platform than

conventional ones.

It must be meeting all the safety and regulatory

requirements.

It has to be built on a scale which shall be more than

double the earlier launches of similar products and

the ramp up must be smooth.

The car has to be designed so that it can be exported

to other countries as the domestic demand may not

materialize as per projections.

The car must be a beacon for the Indian Automobile

industry and prove to the world that we are capable

to take any challenge and come out worthy winners.

That quest to build the world's cheapest car

hasn't ended. The Nano should be available this fall, but

the mission began back in 2003, when Rattan Tata,

34

chairman of Tata Motors and the $50 billion Tata

conglomerate, set a challenge to build a "people's car".

Tata gave an engineering team, led by 32-year-old star

engineer Garish Wagh, three requirements for the new

vehicle: It should be low-cost, adhere to regulatory

requirements, and achieve performance targets such as

fuel efficiency and acceleration capacity.

The design team initially came up with a

vehicle which had bars instead of doors and plastic flaps

to keep out the monsoon rains. It was closer to a

quadricycle than a car, and the first prototype, even a

bigger engine, which boosted the power by nearly 20 per

cent, was still dismal. "It was an embarrassment," says

Wagh.

But failure didn’t stop them

they quickly realized it was necessary to bring everyone

on board, "else it leads to last-minute heartache and

35

delays". Every morning, he would spend an hour or two

on the floor of the Pune factory, insisting that everyone

involved—designers, manufacturing teams, and vendor

development people—be there to accelerate decision-

making and problem-solving.

Over time, Wagh's team grew to comprise

some 500 engineers, an impractically large group to

gather on a daily basis. So instead, a core team of five

engineers gathered every day at three pm to discuss the

latest developments. Each engineer represented a

different part of the car: engine and transmission, body,

vehicle integration, safety and regulation, and industrial

design.

The body had to be changed because

Rattan Tata, over six feet tall himself, wanted it to be

easy for tall people to get in and out of the car. "Imagine

the plight of the body designer—he went through

hundreds of iterations, then at the last minute the car

length was increased by 100 millimeters!" Wagh says.

The attention to detail paid off: When the car rolled onto

the dais at the Auto Show in New Delhi in January, and

Rattan Tata stepped out of the driver's seat with ease, it

made an immediate impact.

36

What shook the automobile world most was

the fact that the designers seem to have done the

impossible: The sleek, sophisticated Nano doesn't look

flimsy or inexpensive. If it had been an upgraded scooter

on four wheels, Tata still would have been applauded for

making a family of four safer on Indian roads. The Nano,

however, affords both safety and status. "The innovation

wasn't in technology; it was in a mindset change".

Business Analysis

37

Cost

Since the car had to be built within a cost of

Rs. 1 Lac, no conventional design would work as the costs

shall be higher and so the entire car has to be

redesigned.

What makes Nano so less expensive can be

well understood from the following diagram

The design has to question the need of each

and every component from the point of view of its

38

necessity of existence and also the minimum

requirements of its functionality. Value Engineering

concepts have to be deployed to finalize the minimum

requirements.

Disruptive Technology:

Is a Technology that brings radical change

by introducing new ways of doing things usually at a

Technology that is:

Significantly cheaper than existing

Technology.

Is much higher performing?

Has greater functionality and

Is more convenient to Use.

Brings to market a totally different

Value proposition than the one

available and can change the Paradigm

about a product.

The Guiding factor was that the cost has to

be minimized for each component yet maintaining its

basic functionality.

39

The Alternatives are:

Reduce Consumption of Material being

used.

Alternate Suppliers to get same

material at fewer prices.

Use alternate materials.

Eliminate use of Material.

Eliminate a process Or a Combination of

the above.

The design was outsourced to Italy's

Institute of Development in Automotive Engineering, but

Tata himself ordered changes along the way. Most

recently he vetoed the design of the windshield wipers.

His solution: a single wiper instead of two, giving the car

a cleaner look.

THE COST REDUCTION PARADIGM Value Engineering

Alternatives:

The target was very clearly defined that

within the given cost structure of 1 Lac all the

components have to be allocated a maximum price and

40

the same had to be achieved using the available

alternatives.

The Guiding factor was that the tax

structure, on materials and manufacturing, must support

the final cost of Rs. 1 Lac

The Decisions were:

Establish factory in a tax free zone.

Get the tax advantages on

infrastructure development.

Get the suppliers to establish base near

the factory.

Get special concessions from State

Govt.

In short select a manufacturing location

where all the advantages could be

achieved.

In short select a manufacturing location

where all the advantages could be achieved.

Total sales estimation41

Now the question was, “how much to

produce”

It was estimated that the demand for

the people’s car shall be at least twice

the demand for Maruti 800, the lowest

end car. Initial projections were at

about 500 K cars per year.

The basic reason was the conviction

that the target price shall redefine the 4

- wheeler segment.

The price decision of Rs 1 lakh is

definitely going to make a lot many

people transit to 4-wheeler fold and

that shall explode the demand.

F only 10% customers of 9 Million two

wheeler market transit to 4-wheelers it

shall amount to 50% of the passenger

car market share.

It was decided to set up plants with 5

lacs cars per annum capacity and ramp

the same up in stages, in line with

increase in market demand.

42

The initial response to the Nano has been

overwhelming and the tiny, Noddy-land car is expected to

help the company cross several milestones. With

revenues at Rs 1,29,994 crore for the financial year 2006-

7, and group companies enjoying a market capitalization

of Rs 2,51,487 crore as on January 10, 2008, the Tata

Group is on a strong footing, contributing more than 3 per

cent to India's GDP. Nano, being the world's cheapest car,

has made international players sit up in amazement and

the company has received proposals from some African,

Latin American and Southeast Asian countries to

manufacture the car there.

Product Development

And finally the product was developed with the

following features.

Engine Capacity Bosch 624 c.c. twin cylinder43

Low capacity, Lighter, sufficient with better Power

Rear Engine to reduce the transmission length using

a balancer shaft.

4 Speed Manual Gear Box

All Aluminum Engine

Higher thermal conductivity than cast iron, Lighter

and so better mileage

Engine Management System by Bosch

Superb control over emission and smooth

acceleration.

Dimensions L: 3.1m, W: 1.5m, H: 1.6m

Less length but more inner cabin space due to

height. Comfortable leg room.

Independent Front & Rear Suspension McPherson

Strut in Front & Coil spring & trailing arm in rear.

Better ride than Maruti 800.

Single piece ribbed steel body with safety features

such as crumple zones, intrusion resistant doors,

seat belts, strong seats & anchorages.

Safety requirements are adequately met.

Single Wiper in place of two.

Cost effective yet functionality is met

Tube less Tires

44

Weight reduced by 2 Kg. Cost reductions 200 Rs. And

in line with modern vehicles

Instrument console in the centre

Elegant to look at and can be used both in Left Hand

& Right hand version.

The list goes on and on.

The Final verdict

THE CAR COSTS Rs 1 lac

Test Marketing And Commercialization

Nano is soon going to launch by the end of April. It

will be commercialized in whole of India. It is mostly

targeted to the middle class and lower middle class

people. The effects of Nano and its commercialization will

be soon known after it comes into the market.

Some myths about NanoWhen Nano was introduced, it

surprised everyone. It had so many features but the cost 45

was as low as Rs. 1 lakh. This was really amazing. Due to

this, many competitors, governments and others opposed

Nano. Moreover, it’s not a new thing that whenever a new

concept is developed, people oppose. They find more

limitations then seeing the benefits. Following are some

myths about Nano. But these are then proved to be

wrong.

Myth no 1

Nano is an unsafe car

The car has an all steel body.

It meets the mandatory Frontal Impact requirements.

It also meets the Side Impact requirements although they are not mandatory in India.

Myth no 2

Nano will greatly increase the Pollution Level

46

The car is Bharat IV and Euro IV compliant although these norms, which are stricter than the present Bharat III norms, are yet to be introduced.

It has lower carbon footprint, 20 mg / Km of Carbon Dioxide emission as compared to 45mg / Km, emitted by most of the two wheelers.

Its Multi Port Fuel Injection system is controlled by an intelligent Bosch Engine Management system which controls the combustion cycle precisely to ensure compliance to all emission norms.

Myth no 3

Nano will struggle to perform

Although the car has 33 bops as the maximum horsepower it has a low kerb weight of 550 Kg and so has a higher power-to – weight ratio when compared to many existing cars running on Indian roads.

The car has a matching acceleration to Maruti 800 and also a good top speed. Although the manufacturers have estimated 90 Kms as the maximum speed the car can go up to 105 Kms per hour top speed.

Myth no 4

47

Nano has very little leg room

Although the car is 8% smaller than Maruti 800 it has lot of extra leg room at front as there is no engine compartment. This also leaves sufficient knee room at the rear.

The car has a tall boy type design so there is lot of head space and also enough Shoulder room.

The mono volume design and the wheels having been put at the corners have freed up lot of in- cabin space and although the car may be registered as a four-setter, three slim adults can sit comfortably at the rear.

Myth no 5

Cheap means Uncomfortable

More comfortable than some of the cars selling at even twice the price. Leaves sufficient knee room at the rear.

Easy to get in & out of the car because of perfect seat height from the ground.

Suspension systems are good and the trailing arms with coil springs are not found in cheap cars. Rear.

Myth no 6

48

It’s very difficult for a rear - engine car to work.

Rear engines work in many cheap as well as expensive cars.

Auto-rickshaws at one end and Formula One cars on the other extreme all use rear engines.

Maruti Omni too has a rear engine, under the seat and no one has been burnt due to that.

Cooling is easier in Nano as compared to some vans and there are the air ducts on either side behind the edge of the doors, which allow air to seep in for both cooling & for intake.

Myth no 7

There is a shortage of storage space.

There is some storage space although not much.

The rear seat with parcel shelf folds to allow accommodating a large suitcase.

Small articles can be placed under the bonnet also.

Myth no 849

Cutting Corners is evident everywhere

Cost cutting is done by smart designing rather than taking out the essentials.

One wiper has been taken out but the functionality is intact. Wind shield washer fluid jets are mounted on the wiper itself rather than the body.

Wheels are held by three bolts instead of four.

On the contrary, MRF tubeless tyres and all Alumininium engine, have been used, which are more expensive than conventional ones.

TATA NANO V/S MARUTI 80050

Competitor

As we know the price of Nano car is much

affordable for middle class people. This car can be easily

affordable by middle class people. In the Indian market it

will face only by one competitor that is Maruti – 800,

which produced by Maruti udyog.

The real question arise who will have the

last laugh Tata or Maruti 800?

The answer is neither Tata nor Maruti 800

but they are the buyers who will have the last laugh

Can Nano beat the popularity of Maruti 800. All the things

depend on their marketing strategy that how they will

attract to Indian middle class customers.

Never mind the fact that what was touted as

a Rs.100,000 car will cost at least a fifth more and that's

for the standard non-air conditioned version.

Jagdish Khattar, a former head of Maruti 800

manufacturer Maruti Udyog Ltd, says it's too early to say

whether the Nano will overtake the original.

"It's a good product but it's still too early to

say whether it will overtake the 800 because it caters to a

51

totally new market segment," he said while watching a

live telecast of Tata's press conference after unveiling of

the Nano. But clearly, at least one other manufacturer

was worried.

Whether or not the Nano will overtake the

Maruti 800, one thing is for sure: the current Auto Expo

will be remembered for Tata's people's car and for that

product alone. It is the Nano that has captured the

hearts and minds of a majority of the spectators.

Price of Maruti in major city of India – 800 (a/c LPG)

(Figures in rupees)

TATA NANO V/S MARUTI 800

Mumbai 245648

Delhi 228858

Bangalore 231407

Kolkata 236826

Lucknow 232542

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FEATURES OF TATA NANO COMPRAED TO MARUTI 800

COST:

The dealer price of Maruti 800 varies from city to city.

The dealer price in Delhi is 1.97 laths and the road

price is approximately 2.28 laky Indian rupees.

The dealer price of Nano is just 1.00 lakhs rupees and

the road price is only 1.26 lakhs rupees.

So here we can put the equation 2 * Nano = 1*

Maruti – 800

ENGINE:

53

Maruti 800: – 800 cc

Tata Nano :623 cc (better fuel than Maruti 800)

ENGINE TYPE:

Maruti 800 – petrol/LPG

Nano : petrol (diesel version will be later)

SEATING CAPACITY:

Maruti 800: 4+1 person

Nano: 4+1 person

FUEL TANK CAPACITY:

Maruti800 : 28 Lt (petrol), 19.2 (LPG)

Nano: 30 Lt.

WEIGHT

Maruti 800 – more than 690 kg (gross weight is 1000

kg)

Nano – more than 600 kg

TOP SPEED:

54

Maruti 800 : 120 km/hr

Nano : 90 km /hr

SEGMENT:

Maruti 800 – middle class people

Nano: lower and middle class people.

FUEL CONSUMPTION:

Maruti 800: city 13.6 and highway 17.6 km

Nano: city 22 km and highway 26 km

DIMENSIONS:

Maruti 800 Tata Nano

Length 3.335 meters

(131.3 inch

3.1 meters

Width 1.440 meters

(56.7 inch)

1.5 meters

Height (55.3 inches) 1.6 meters

BREAKS:

Maruti800: Front Disk, Rear Drum

Nano: Front Disk, Rear Drum

COLOURS

Maruti 800

55

Tata Nano:

56

The Nano are not much taller and broader

as compared to Maruti – 800 but it has 21 percent

larger spaces in side but 8 percent short than Maruti.

Disadvantages of NANO vs. Maruti 800

1. LPG/CNG version is doubtful.2. Top Speed will be laser than 800.3. Space for Language is less.

Particulars Tata’s one lakh car Maruti 800

57

Data Collection Methods

The success of any project or market survey

depends heavily on the data collection and analysis. It is

necessary that the data collected is a reliable data in

order to achieve the research objective.

For research regarding the views of people

about Tata Nano and its comparison between Tata Nano

and Maruti 800 two types of data collection methods

were used

Primary Data

Secondary Data

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PRIMARY DATA:

Primary data is the data, which are fresh

and collected for the first time, and are original in

character. There are various Primary Data Collection

techniques, which have helped in data gathering. This

was collected through questioner.

Questionnaires are a popular means of

collecting data, but are difficult to design and often

require many rewrites before an acceptable questionnaire

is produced.

Advantages:

Can be posted, e-mailed or faxed.

Wide geographic coverage.

Relatively cheap.

No prior arrangements are needed.

Avoids embarrassment on the part of

the respondent.

Respondent can consider responses.

No interviewer bias.

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Disadvantages:

Design problems.

Questions have to be relatively simple.

Time delay whilst waiting for responses

to be returned.

Several reminders may be required.

Assumes no literacy problems.

No control over who completes it.

Not possible to give assistance if

required.

Problems with incomplete

questionnaires.

Points kept in mind while preparing the

questioner

Liberal spacing

Length of the questioner is kept normal

Logical Order

Question are short, simple and to the

point; all unnecessary words are

avoided

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Close ended questions are asked so

that its easy for the respondent to fill

the questioner and also easy to analysis

Sample population was selected on the

basis of random sampling method.

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SECONDARY DATA:

Secondary data are those data, which have

been already collected or published for the purpose other

than specific research need at hand. This data is simply

used up by the researcher for his purpose of collected

data and it’s used for the same purpose. The secondary

data sources here in this project are:

Websites:

www.tatamotors.

com,www.google.

com,www.maruti

suzuki.com,www.

autocarindia.com

,www.autobid.in,

www.overdrive.in

,

Books :

Auto Bid Magazine,

Overdrive Magazine,

Autocarindia

Magazine

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Various Results Of Analysis In The Form Of Charts

97%

3%% of people who are aware of tata nano

yes no

the % of people who are aware of the tata’s

new product – Nano car is shown with the help of pie

chart.

o Here, blue color indicates that people are aware of

tata Nano

o And red color indicates the % of people who are not

aware of tata Nano.

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While analyzing the chart, we can know that

only 3% of the total sample population is not aware about

tata Nano. This shows the great effect of media,

newspaper and launching of this product.

Preferences Of Different Age Group Regarding Buying Of Nano.

15-3031-45

45-60above 60

0

1

2

3

4

5

6

7

8

yes

no

not sure

yesno not sure

this chart shows the preference of different

age group to buy tata nano when it is launched.

Here on x- axis, no of respondents is given.

And on y – axis the age group is given.

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o Blue triangle indicates willingness to purchase tata

Nano.

o Red triangle indicates that the respondent is not

willing to pruchase it

o And green indicates that the respondent is not sure.

While analysing this chart, we can see that

the young generation is egar to buy the product. While

due to some misunderstandings about tata nano, the

older generation doesn’t desire to buy it or are not sure

about it.

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Preferences Of The Respondents Regarding Buying Of Motor Bike, Maruti 800 And Tata Nano

Preferences for buying motor bike, maruti 800 or tata nano

motor bikemaruti 800tata nano

this chart shows the preference of the

respondent. The question asked in the questioner was, “if

you were to buy one of the following, which would you

prefer.” the options given were:

motor bike Maruti 800 tata Nano

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by having a glance at the chart, we can see

that majority went for tata Nano. Maruti 800 got very less

votes. This shows a tough time for Maruti in future.

Views about success of Nano

50%50%

views on success of nano

successnot sure

the question asked here was,”do you think

Nano will be successful” the options given were

yes no not sure.

It’s very interesting to note here that none

of the respondent said that Nano won’t be successful. As

shown in the chart, the portion of purple color which

shows failure is not there at all.67

But again every body does not believe in its

success. As seen form the chart, 50% of the respondent

has a doubt about success of Nano.

Nano- A People’s Car !!!

No of People;

44

No of People; 12

No of People; 14

No of People;

30

Cost Size Looks Innovation

The question asked here is, “What is it that makes Nano a

people’s car?”

By analyzing the chart, we can say that

people consider the cost factor the most for Nano

followed by the innovation. Even looks has got quite

positive reply. Nano is a product that is developed

perfectly at minimum cost without sacrificing the quality.

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Some Feedbacks Based On Questioner:

Positive Response

I have one more angle to look at Nano. I think it is

worlds most hyped about gadget after the iPhone.

Did I just say “gadget”. Well, yes Tata Nano is not

just a car; one can also look at it like an expensive

gadget which also gives us mobility. One of the very

few cute looking gadgets that all us geeks will love,

who would generally be interested in stuff that is

sleek and powerful. I am also hopeful that Tata will

launch FCV and alternative fuel cars soon.

I definitely would like to buy the car. Who would not

want a good car for just 100000 Rs?

It’s just cool. One should definitely buy it.

Cheap As it is, but very smart and sexy. I would

defiantly buy it.

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Congratulations to Mr. Rattan Tata. He did a real

good job.

Negative Response

It is impossible to build a car at such a price. No one

has been able to do it so far. It is just not possible.

It will be more like a scooter with a roof. I am sure no

one can make the car for the cost of two bikes.

This car is another auto rickshaw. It will add a lot to

the traffic on road.

It shall be a half car with no roof. I doubt if it will be

able to go up the flyovers.

It may be an upgraded Auto-rickshaw with plastic

body. It shall be a very unsafe car as the very idea of

1 Lac car is too farfetched to be true.

It shall never meet the emission norms. We shall

choke on the poisonous emissions from this car.

The disbelief kept piling up and up and was

further compounded by the competitors adding their

own mite to the speculations. 70

Mixed Response

IT HAS NOT BEEN DONE EVER. Even the nearest car

is double the cost. Let us see what Mr. Tata can do to

maintain the price line.

I am not very convinced but would definitely go for it

if it is safe.

I hope I can take my family of 4 in this car. I wish

Tata's make this dream a reality.

I know the talk is that it is a myth. However miracles

do happen. Let us wait and watch.

The reaction was a mixed one. People

wished it to be true but were very cautious about

expressing their optimism.

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Conclusion

MY OPINION

After the study of various aspects I found

that –

Nano Car Is Definitely Not For:-

Someone looking for better performance

Someone who is looking to impress

Someone who want to speed trial on Sunday

Someone who is looking for long drives.

But Nano Car Is Defiantly For –

Someone who is looking to buy a car but cannot

afford much price.

A students who want to go college, tuition instead of

bike etc.

Someone who depends on second hand car.

For a house wife who can buy a car with her own

savings.

Someone who depends on scooter. 72

So Nano is not a basically a luxury cars but

it can fulfilled the all capacity for middle class people.

Impact Of Tata Nano On Life Of Common Man

In India every one can afford a Nano, just as we buy

any electronic appliances for a home uses.

Decrease in price of second hand car.

High traffic on roads due to sale of exceeds car on

roads.

Increase in loan on car installments.

And finally Nano is definitely better than

Maruti 800.

tata has succeeded in value engineering of

the product and its great success for tata’s. It’s

something on which India can feel proud of. Nano has

been developed effectively.

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QUESTIONNAIRE

Que1. Which brand of Car’s do you prefer?

Tata Nano Maruti 800

Que2. Rank the brands of cars according to your preference? (1 for most preferred)

Tata Nano Maruti 800

Design

Mileage

Company Status

Resale Value

Que3. How much importance do you give to the following factors when you purchase a Car ? (Tick in the desired column)

Factors Very Important

Important Normal Least Important

None

ComfortCostInteriorExteriorInnovationLookSizeSafety

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Que4. How much are you satisfied with the following factors in your preferred Car ? (Tick in the desired column)

Factors Very Satisfied

Satisfied Normal Least Satisfied

Can’t Say

ComfortCostInteriorExteriorInnovationLookSizeSafety

Que5. Which form of a Car do you like?

Tata (Other Cars) Maruti Suzuki (Other Cars)

Que6. Which promotional offers attract you most?

Free gifts Price Offer Any other

Que7.Which of these factors affect your purchase?

Advertisement

Suggestion from friends and relatives

Attractive Offers

Brand Ambassadors

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Que8. Which media of advertisement influence your purchase?

Television Newspapers Brochures

Hoarding Display

Que9. How frequently do you purchase cars?

Once in a Year Once in a Two YearsOnce In a Five Year Once in Ten YearsOnce in a hole Life

Que10. What according to you is the reasonable price of Cars ?

Below One Lakes One Lakes 1-2 Lakes

2-3 Lakes Above 3 Lakes

Que11. If your preferred brand is not available for repeat purchase then what will you do?

Postpone your purchase

Switch over to other brand

Go to the other showroom to search for your preferred brand

Que12. If another brand of the same product appears in the market, will you prefer to stop buying this brand and buy the new brand?

No, not at all I may consider

No, I shall not can’t say

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Que13. If you don’t like to change to the new brand, then what are the reasons for continuing to

purchase the old brand?

PERSONAL DETAILS

Name:

Address:

Age:Between 15-30 Between31-45Between 45-60 Above 60

Gender: M/F

Phone Number:

Marital status:

Education:

Profession:

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