A Project Study Report On

New Product Development With Tata Nano And Comparative Study on Maruti Suzuki Alto 800
Submitted to RTU, Kota in partial fulfillment for the Award of degree of Master of Business Administration

Submitted To: Dr.PANKAJ GUPTA Faculty Guide

Submitted By: DIWAKAR PALIWAL MBA IVSEM.

2011- 2013 APEX INSTITUTE OF MANAGEMENT & SCIENCE, JAIPUR

(Approved by AICTE, New Delhi & Affiliated to Rajasthan Technical University, Kota)

PREFACE
This is the specialization project on a study onNEW PRODUCT DEVELOPMENT WITH TATA NANO AND COMPARATIVE SYUDY ON MARUTI SUZUKI ALTO 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 Suzuki Alto 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
Such Thanks I give as near death to those that wish him Live - Shakespeare A formal statement of acknowledgement will hardly meet the ends of justice in the matter of expressing my deep sense of gratitude and obligation to all those who helped me in the completion of this project report.

I express gratitude to various faculty members especiallyDr.Pankaj Gupta 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. 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.

(Signature of student)

DIWAKAR PALIWAL MBA IV SEM.

Table of contents:
Sr. No. 1 2 3 4 5 6

Subject

Pg. No

Introduction to Automobile industry in India 5 Introduction to the subject new product development 13 Introduction to Tata Nano Tata Nano and new product development Upcoming Variant Of Tata Nano In 2013 Some myths about Nano 22 27 38 46

7 8 9 10 11 12

Comparison between Nano and Maruti Suzuki Alto 800 49 Research Methodology Data collection method& interpretation Some feedback about Nano Conclusion Bibliography 64 70 91 93 101

Introduction to Automobile industry in India

Introduction to Automobile industry in India

The automotive industry in India is one of the larger markets in the world and had previously been one of the fastest growing globally, but is now seeing flat or negative growth rates.India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9 million units in 2011.According to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil), grew 16 to 18 per cent to sell around three million units in the course of 2011-12.In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second (after China) fastest growing automobile market in the world in that year. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 4 million by 2015, no longer 5 million as previously projected. The majority of India's car manufacturing industry is based around three clusters in the south, west and north. The southern cluster consisting of Chennai is the biggest with 35% of the revenue share. The western hub near Mumbai and Pune contributes to 33% of the market and the northern cluster around the National Capital Region contributes 32%. Chennai, with the India operations of Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, and PSA Peugeot Citron is about to begin their operations by 2014. Chennai accounts for 60% of the country's automotive exports. Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car manufacturer, Maruti Suzuki, is based. The Chaka corridor near Pune, Maharashtra is the western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land 6

Rover, Jaguar Cars, Fiat and Force Motors having assembly plants in the area. Nashik has a major base of Mahindra & Mahindra with a UV assembly unit and an Engine assembly unit. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster. Another emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and further planned for Tata Nano at their plant inSanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up in Gujarat. Kolkata with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in very small numbers. An embryonic automotive industry emerged in India in the 1940s. Mahindra & Mahindra was established by two brothers as a trading company in 1945, and began assembly of Jeep CJ-3A utility vehicles. Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj which hampered the Indian private sector. Total restrictions for import of vehicles were set and after 1970 the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Eventually multinational automakers, such as, though not limited to, Suzuki and Toyota of Japan and Hyundai of South Korea, were allowed to invest in the Indian market around the country. Ultimately leading to the establishment of an automotive industry in India. A number of foreign firms also initiated joint ventures with Indian companies. On 03-18-23 global brands such as Proton Holdings, PSA Group, and Geely Holding Group are shelving plans for India do to the global economic crisis.

Emission norms In tune with international standards to reduce vehicular pollution, the central government unveiled the standards titled 'India 2000' in 2000 with later upgraded guidelines as 'Bharat Stage'. These standards are quite similar to the more stringent European standards and have been traditionally implemented in a phased manner, with the latest upgrade getting implemented in 13 cities and later, in the rest of the nation. Delhi(NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmadabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra are the 13 cities where Bharat Stage IV has been imposed while the rest of the nation is still under Bharat Stage III.

Exports

Mahindra Scorpio Jeep in service with the Italy's CNSAS. India's automobile exports have grown consistently and reached $4.5 billion in 2009, with United Kingdom being India's largest export market followed by Italy, Germany, Netherlands and South Africa. India's automobile exports are expected to cross $12 billion by 2014. According to New York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies like Hyundai, Nissan, Toyota, Volkswagen and Maruti Suzuki. 8

In 2008, South Korean multinational Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011.Similarly, USautomobile company, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. In September 2009, Ford Motors announced its plans to set up a plant in India with an annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both for the Indian market and for export. The company said that the plant was a part of its plan to make India the hub for its global production business. Fiat Motors also announced that it would source more than US$1 billion worth auto components from India.

A Tata Safari on display in Poznan, Poland. In July 2010, The Economic Times reported that PSA Peugeot Citron was planning to re-enter the Indian market and open a production plant in Andhra Pradesh with an annual capacity of 100,000 vehicles, investing EUR 700M in the operation. PSA's intention to utilize this production facility for export purposes however remains unclear as of December 2010. In 2009 India (0.23m) surpassed China (0.16m) as Asia's fourth largest exporter of cars after Japan (1.77m), Korea (1.12m) and Thailand (0.26m) by allowing foreign carmakers 100% ownership of factories in India, which China does not allow.

The Maruti Ertiga, a model exported by Maruti Suzuki India. In recent years, India has emerged as a leading center for the manufacture of small cars. Hyundai, the biggest exporter from the country, now ships more than 250,000 cars annually from India. Apart from Maruti Exports' shipments to Suzuki's other markets, Maruti Suzuki also manufactures small cars for Nissan, which sells them in Europe. Nissan will also export small cars from its new Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is in preparation to launch electric vehicles in Europe in 2010. The firm is also planning to launch an electric version of its low-cost car the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and small SUV models in the U.S. market. Bajaj Auto is designing a low-cost car for Renault Nissan Automotive India, which will market the product worldwide. Renault Nissan may also join domestic commercial vehicle manufacturer Ashok Leyland in another small car project. While the possibilities are impressive, there are challenges that could thwart future growth of the Indian automobile industry. Since the demand for automobiles in recent years is directly linked to overall economic expansion and rising personal incomes, industry growth will slow if the economy weakens.

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Top 20 export destinations in 2007-2008 and growth from previous year Rank Country United States of America Italy Sri Lanka South Africa United Kingdom United Emirates Algeria Bangladesh Egypt Germany Colombia Nepal Mexico Turkey Spain France Nigeria Greece Netherland Ghana Arab 2007-2008 (in USD 2008-2009 (in USD Percentage Millions) 593.64 332.35 249.14 224.93 165.57 164.44 147.34 137.26 134.43 133.52 118.88 111.33 93.80 83.53 81.01 76.77 66.01 65.75 65.19 59.91 Millions) 525.24 359.68 216.11 188.57 246.32 192.74 265.63 164.86 143.54 409.63 120.71 98.13 94.10 73.82 56.96 134.21 148.74 127.63 163.66 38.30 Growth -11.52 8.22 -13.26 -15.79 48.77 17.21 80.28 20.11 5.99 206.8 1.54 -11.86 0.32 -11.63 -29.69 74.83 125.03 94.1 151.05 -36.07

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

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Passenger vehicles in India This list is of cars that are officially available and serviced in India. While other cars can be imported to the country at a steep 105% import duty, car-makers such as Romeo, McLaren, Pagani, Cadillac, Chrysler, SSC,Zenvo, SEAT, Smart,Daihatsu, Lexus, Infiniti, Acura, Saab, Spyker, Lotus, Ariel, Caterham,Peugeot-Citron, Mazda, Jeep,

SsangYong, Kia,GAZ and Proton are in varying stages of official introduction to the Indian automobile market. Electric vehicle and Hybrid vehicle (xEV) industry During April 2012 Indian Government has planned to unveil the roadmap for the development of the domestic electric and hybrid vehicles (xEV) in the country. A discussion between the various stakeholders including Government, industry and the academia is expected to take place during 23 24 February. The final contours of the policy will be formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport and Power are involved in developing a broad framework for the sector. Along with these ministries big auto industry names such as MrAnand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and MrVikramKirloskar (Vice-Chairman, Toyota Kirloskar) are also involved in this task. Government has also proposed to set up an Rs 740 crore R&D fund for the sector in the 12th five year plan during 2012 The idea is to reduce the high cost of key imported components such as the battery and electric motor and develop such capabilities locally.

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Introduction to the subject new product development

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Introduction To New Product Development

Meaning Of Product:

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:

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

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Stages Of New Product Development

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 competitors products and services. They can find out what the customers like or dislike about their competitors products. Ideas can also come from investors. External research, surveys industrial publications research and development etc. 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.

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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. 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. Companys 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.

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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. The third part of marketing strategy plan describes the long run sales and profit goals and the marketing mix strategy over time.

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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 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.

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Product Development
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:
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.

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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.

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 customers 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.

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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.

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 vehicle o o o o o Installed Capacity - 350,000-400,000 vehicles a year Investment - Rs 2,500 crore (Rs 25 billion) Turnover - $21.9 billion (Rs 967,229 million) Employees - 2,46,000/22001 Tata Motors had created the wealth Rs. 320 billion during 2001-2006 and stood among top 10 wealth creators in India. commercial

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Introduction to Tata Nano

Tata Nano - ONE LAKH CAR PROJECT Peoples 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

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in Delhi. The Nano project didnt grab the attention of only Indians; the entire world had their eyes glued to the worlds cheapest car. A truly Peoples 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. 1,25,000 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. Rattan Tata. And with high qualified IT skills people he has shown the Indian talents to whole the world. Idea conceived by Cost of development Manufacturing cost (excluding dealer margin and taxes)- Rs 65,000 per unit Development of Design Time for designing the car India 4 years

Rattan Tata 1700 crores

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 skills?

have accepted Indian IT

Details Of Nano
Specs: Engine: 624 cc / 33 bhp 4 door, 5 seater (and yes 4 Wheeled too) Rear Engine 23

Weight: 600 kgs Mileage - 22-23 km/liter

Variants: Standard Deluxe (with AC)

Future: Diesel And CNG Variant Exports outside India or assembly plants outside

Comparison
8% less in length (bumper to bumper) with respect to Maruti Suzuki Alto 800 21% more in inner space with respect to Maruti Suzuki Alto 800

Looks: Front side looks more like Matiz (or Spark as we 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 actuallaunch of the car.

This will result into: OLD GENERATION GENERATION NEW

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SOWT Analysis
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 25

 Limited features

THREATS
Company rival Not sure to hit in rural and semi-urban areas

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Tata Nano and new product development

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New Product Development AndNano

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 its 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 the India of todayan 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 Nanoon average aged between 25 and 30has helped to flatten Tata Motors' stodgy, multilayered management structure, which has resulted in an unexpected sidebenefit called organizationalinnovation".

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Idea Generation AndNano

A 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 fourwheelers," he says. "Today they can't afford it." 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 higherthan India's annual per capita income. The average pay for factory workers at Tata Motors is just $5,500 a year.

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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 peoples car it should be a car and not something that people would say, Ah! Thats 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 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."

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Concept Testing And Developing

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 fourwheeler?" 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?

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, 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 lowcost, adhere to regulatory requirements, and achieve performance targets such as fuel efficiency and acceleration capacity. 31

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 didnt stop them they quickly realized it was necessary to bring everyone on board, "else it leads to last-minute heartache and 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 designerhe 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. 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".

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Business Analysis 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 necessity of existence and also the minimum requirements of its functionality. Value Engineering concepts have to be deployed to finalize the minimum requirements.

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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. 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:

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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 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 estimation

Now the question was, how much to produce It was estimated that the demand for the peoples 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.

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 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.

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 cylinder 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 Suzuki alto 800.

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 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 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.

37

UPCOMING VARINT OF TATA NANO IN 2013

Tata Nano to get a DIESEL VARIANT-:
Tata Nano Diesel is one of the much awaited cars in the Indian auto market. It is anticipated that the car will be introduced in 2013 in the hatchback segment. As per latest updates, the Nano Diesel will have the smallest diesel power-train in the world, which will set another record in Nanos history. Post launch, the car will be considered as the most fuel efficient diesel car in India. It is expected that the Tata Nano Diesel will hold a CRDI diesel engine from Bosch. The car maker has not provided much detail regarding the technicalities of the Nano Diesel.

Tata Nano Diesel will be assimilated with a 0.7 litre diesel engine, which will have a displacement of 700 cc. The maximum power churned out by the engine of this car is 33 bhp, which is quite acceptable in this segment. In addition, maximum torque attained by this engine is 51 Nm at 4000 rpm. In order to assist the mechanism of this car, the engine of Tata Nano is expected to be assimilated with a four speed manual transmission. Tata Nano diesel is equipped with a performance oriented engine and thus it is bound to deliver low emission and a decent fuel economy. The company has not made any official declaration regarding the test figures of Tata Nanos fuel economy, but it is expected that the car will cover a distance of 40 kmpl, which is excellent in this segment.

In order to deliver a hassle free drive to its passengers, the company has incorporated independent McPherson Struts, coil spring suspensions in the car. Along with this, 38

analysts are also expecting revamped suspension system and a power assisted steering wheel, which are some of the mechanical upgrades that will be incorporated within the car.

Tata Nano Diesel will be incorporated with improved interiors with up market upholstery. As per speculations, the car will have better bolstered seats to provide optimum comforts to its passengers. Tata Nano Diesel will be provided with sufficient space for the passengers of both the rows, resulting in a peaceful journey. Four passengers can comfortably travel in the car. A boot space of 80 liters enhances the comfort of this small car.

Tata Nano Diesel will be almost identical to the current petrol version of Nano. The length, width and height of Tatas new car are 3099 mm, 1495 mm and 1652 mm, respectively. Fuel tank capacity of the car is 30 litres, which is quite sufficient since its performance oriented engine delivers an impressive fuel economy. Apart from these advancements, the company has also made a special provision for the security of its passengers, and thus the car holds some of the advanced safety features. The company has offered seat belts in front as well as rear portion, remote central locking system, fog lamps in front as well as rear end and door ajar warning system.

About Tata Nano Diesel

Almost two years after launching the petrol version of its small creation Tata Nano in the Indian market, Indian auto giant Tata Motors is now planning to launch the diesel version of this car in the country by Sep 2011. The engine capacity of the Nano Diesel

39

is speculated to be in the range of 600 to 700 cc and the Nano Diesel will boast the worlds smallest Bosch Common Rail Direct Injection (CRDi) system.

The Tata Nano diesel will be the smallest diesel run car in the Indian market as so far there are only petrol run cars available in the starting range segments A (Maruti 800) and A+ (Maruti Alto). Tata Nano diesel will be the only such car in the country and will thus create a segment of its own in the Indian auto market.

Fact Sheet:

Make

Tata

Model

Nano

Fuel Types

Diesel

Price

Rs.1.75 lakhs to Rs.2.5 lakhs

0.7 litre CRDI engine of 700 cc Key Specifications 40

Maximum power produced 33 bhp at 5500 rpm, whereas highest torque attained is 51 Nm at 4000 rpm.

Launch Date of Nano Diesel: Nano Diesel can be seen any where between August October 2013 in Indian Market. It will come in 3 models - Base, Cx, Lx Models

Tata Nano to get a CNG VARIANT-:

41

Tata will also be launching a CNG variant of the Tata Nano, which should reduce running costs considerably. The CNG variant of the Nano will have its CNG tank under the front seats to distribute weight more evenly and save space in the car. It will, however, be a much smaller tank than what hatchbacks normally carry, but the combined range of the 15 litre petrol tank and CNG should give the car a range of over 500 km. It should be introduced this summer. The new Tata Nano CNG Concept Car powered by 624cc, which generates with Maximum Power 37 Bhp @ 5500 rpm, Maximum Torque 51 Nm @ 4000 rpm, 4 Manual Gears.

Tata Nano CNG Concept Car Summary:42

* Name: Nano CNG Concept * Model: * Car Body Type: Hatchback * Segment: A Segment * Top Speed: 105 * 0 to 60: 8.00 * 0 to 100: 12.50

Tata Nano CNG Concept Car Specification:* Length: 3099 mm * Width: 1495 mm * Height: 1652 mm * Seating Capacity: 4 * Tyre Size: 135/70 R12 155/65 T12 * Suspension: Independent McPherson Struts, Coil Spring * Turning Circle: 4.00 mtrs. * Boot Space: 80.00 ltrs. * Steering: Power * Brakes: Front Disk, Rear Drum * Gears: 4 Manual * Ground Clearance: 180.00 mm * Fuel Tank: 15.00 * Kerb Weight: 635.00 kgs. * Trip Meter: 2 Launch Date: As per our estimates - Nano CNG can be launched anytime during Quarter - 2, May - June 2013 in India Price: Tata Nano CNG can be priced in range of Rs. 1.85 Lacs - 2.49 Lacs

Tata Nano 800cc car launch In 2013-2014

It is shocking that Tatas dream car and the worlds cheapest car Tata Nano has faced defeat in its own homeland. But the car maker is unwilling to face it and thus is about to make three fresh attempts in order to make this car a real success in India. 43

First will be the launch of the 800cc model and the next two will be addition of the diesel and the CNG variants. Thus, the Tata Nano 800 will be competing head on with the Maruti Alto 800 that has these days literally swept the entire entry level car buyers to its side.

Now that Tata has decided to launch the 800cc Nano soon, it seems that there will be now no reasons for people to deny buying this car. The Tata Nano 800 price is also expected to be around Rs 2.5 lakh and at this price the car will be much more lucrative than the Alto 800 or the entry level Chevrolet Spark. It is three years now and the Nano still is trying to force Tata Motors to expand its production capacity whereas other car makers go for capacity expansion even in the 44

first year of the launch of any new car. So what went wrong with the Nano? But whatever happened to Nano is not good for Tata Motors. In November the car sales have touched as low as 3500 units only and that is a danger sign and thus the car maker has devised these three ways to transform Nano from a low selling car to the highest selling car. First it was the poor mans car title that did the damage and then some stray incidents of fire fueled the hate for this car among the nave rich.

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Some myths about Nano

When Nano was introduced, it surprised everyone. It had so many features but the cost was as low as Rs. 1 lakh. This was really amazing. Due to this, many competitors, governments and others opposed Nano. Moreover, its 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

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.

46

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

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 foursetter, 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.

47

Myth no 6

Its 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 8 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.

48

Comparison between Nano and Maruti Suzuki Alto 800

49

COMPARISON BETWEENTATA NANO V/S MARUTI SUZUKI ALTO 800

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 SUZUKI ALTO 800, which produced by Maruti udyog.

The country like India is aware of the hard fact that if one desires better fuel efficiency and effortless driving on road; small cars are the best option. So from leading automobile manufacturer Maruti Suzuki to home grown carmaker Tata Motors, both have designed and offered best small cars to the country. And here we are seeking to compare new Alto 800 from Maruti to Tata Nano2012, which are two exclusive models in the country with quite a lot differences and exclusive features but at the same time terrific pricing in order to attract entry-level car buyers. Therefore in order to make the decision process easier for customers, lets explore both the models New Alto 800

50

and Tata Nano and bring out the exclusivity of these two amazing small cars.

Exteriors:-

All-new Alto 800 is truly adorable as it is bit boxy, taller, smarter and exquisite. It is quite refreshing to look at from exteriors point of view with fresh designing and trendier pattern. Extremely sporty in appearance, the new model Alto 800 has got redesigned headlamps, tail lamps and brushed up structuring as it flaunts more on the outside with:

- High mounted headlamps in petal design

Two part front grill -Trendy Spoiler -Wheel Arches - Crystal Tail Lamps, etc

51

Tata Nano 2012 is very cute to look at, especially with its exciting and catchy color scheme from Rouge Red, Mojito Green, Sunshine Yellow, Meteor Silver to Neon Rush, Papaya Orange, Pearl White, Champagne Gold, Aqua Blue and Serene White. Nano 2012 also shows off: - Body Color Bumpers & Door Handles - Clear Lens Headlamps & Tail Lamps - Tinted Glasses - Tinted Windshield with intermittent washer and dual speed wipers, etc

Interiors:-

New Alto 800, being the most eagerly awaited car of this festive season comes with some grand cabins that look plush and elegant. Smartly crafted model has now got heightened leg and head room with newly crafted dashboard, improved central console plus overall use of quality plastic material. Maruti Suzukis new Alto 800 swanks:

52

- Bits of Silver Tracing in the Cabins - Sleek Seating Arrangement - Better Upholstery Design with New Shading, etc

The mini car Nano is superb from inside as compared to its older sibling. The 2012 version is quite refined and tasteful as the Nano is adorned with luxury appeal along with several toned up interior designing. The Nano now comes with: - Premium Beige Color Dashboard - Upholstery in Premium Beige Fabric - Trendier Comfortable Seating with new shade combination, etc

53

Engine, Specification & Performance:-

The newly arrived Alto 800 from the home of Maruti Suzuki is equipped with tried and tested 3-cylinder, 800cc petrol engine borrowed from the older sibling Alto, the best selling hatch in India. But at the same time, automaker has improved the overall efficiency of the engine, which now fetches impressive power of 47.5Bhp at 6000rpm and 69Nm of peak torque at 3500rpm. With powerful engine and smarter plus quick gear shifting, the new Alto 800 is effective, terrific and flawless.

Tata Nano 2012 captures its cruising capability from 2-cylinder, 624cc, MPFI engine that delivers fine maximum power of 38 Ps at 5500 rpm and great torque of 51 Nm at 4000 rpm. The engine comes mated to four-speed manual gearbox. The mini hatch also gets Independent, Lower Wishbone, McPherson Strut with gas filled dampers and antiroll bar for suspension purpose for front power while Independent, Semi Trailing arm with coil spring & gas filled shock absorbers for the rear ones. The new Nano 2012 covers its 0-100km distance in 29.7 seconds.

54

Comfort and Convenience :-

The new small car Alto 800 from king of the Indian auto jungle, Maruti Suzuki offers some very exciting features in the compact car that makes the ride more comfortable and convenient. Few of them are listed below:

- Power Steering - All Four Door Power Windows - Air Conditioner/Heater - Rear Headrest - Front Cup Holder - Glove Compartment

55

Tata Nano 2012 is too filled with ample of amazing comforting features such as air conditioner, heater, front power windows, cabin lamp, map pocket of fabric, front seat headrests, sun visor on driver and passenger side, driver seat with slider, head lamp leveling, low fuel warning lamp etc. The top end version also gets: - Rear Seat Integral Headrests - Passenger Side Seat with Recliner - Rear Assist Grips - Front Cup Holder - Gear Shift Console, etc

56

Safety:-

Maruti Suzuki, the Japanese auto giant has equipped its newly launched Alto 800 with few of the significant safety features such as: - Central Locking - Outside Rear-View Mirrors - Front Fog Lamps - Safety Belts - Driver Side Airbag

Tata Motor Nano 2012 from the Indian carmakers ho me has got good safety lineaments like: - Center High Mount Stop Lamp - Laminated Windshield - Door Lock on Driver Side - Booster-assisted Brakes - Front & Rear Seat Belts - Additional Body Reinforcements - Intrusion beam and radial

Mileage:-

New Alto 800 (petrol) gives a mileage of 22.7kmpl and CNG version renders fuel efficiency of 30.46 km/kg, according to ARAI certification.

57

The all new Tata Nano 2012 is more fuel efficient, offering a mileage of 25.4 kmpl, ARAI certified.

Price:-

With competitive pricing, the new Alto 800 (petrol) shows off a price tag of Rs. 2.44 lakh, while the CNG version comes with a price label of Rs. 3.56 lakh, ex-showroom Delhi.

Tata Nano 2012 is available at a range between Rs. 1.27 lakh to Rs 1.96 lakh (Exshowroom New Delhi).

Verdict: -

Small cars are truly the top contenders of domestic auto market and one among them is newly launched Alto 800 from the auto rulers stable, Maruti Suzuki. On the contrary stands the peoples car Nano from Tata Motors that is still strugglin g to make big in the market with few wonderful updates and facelifts. Though Nano never able to pick up that top speed in the country, Alto 800 is the new contender that is very sure of its success because of many great aspects and its crafted platform based on bestseller Alto. Choice is all personal, which one to pick and drive on busy Indian streets.

58

Price of Maruti Suzuki Alto 800 in major city of India Alto 800 (Figures in rupees) Mumbai Delhi Bangalore Kolkata Lucknow Jaipur 257000 243000 258000 262000 253000 251000

TATA NANO V/S MARUTI SUZUKI ALTO 800

FEATURES OF TATA NANO COMPRAED TO MARUTI SUZUKI ALTO 800

59

COST:
The dealer price of Maruti Suzuki Alto 800 varies from city to city. The dealer price in Delhi is approximately2.43 lakh and the on road price is approximately 2.73 lakhs 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 Suzuki Alto 800

ENGINE:
Maruti Suzuki Alto 800: 796 cc Tata Nano :624 cc (better fuel than Maruti Suzuki Alto 800)

ENGINE TYPE:
Maruti Suzuki Alto 800 petrol/CNG Nano : petrol (diesel / CNG version will be later)

SEATING CAPACITY:
Maruti Suzuki Alto 800: 4+1 person Nano: 4+1 person

FUEL TANK CAPACITY:

Maruti Suzuki 800 : 35 Lt (petrol) Nano: 15 Lt. 60

WEIGHT
Maruti Suzuki Alto 800 more than 695 kg (gross weight is 1185 kg) Nano more than 600 kg

TOP SPEED:
Maruti Suzuki Alto800 : 145 km/hr Nano : 90 km /hr

SEGMENT:
Maruti Suzuki Alto 800 middle class people Nano: lower and middle class people.

FUEL CONSUMPTION:
Maruti Suzuki ALTO 800: city 17.0 and highway 22.74km Nano: city 22.2 km and highway 25.4 km

DIMENSIONS:

Maruti Suzuki ALTO 800

Tata Nano

Length Width Height

3.335 meters (131.3 inch 1.440 meters (56.7 inch) (55.3 inches)

3.1 meters 1.5 meters 1.6 meters

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BREAKS:
Maruti Suzuki Alto800: Front Disk, Rear Drum Nano: Front Disk, Rear Drum

COLOURS

Maruti Suzuki Alto 800

Tata Nano:

62

The Nano are not much taller and broader as compared to Maruti Suzuki Alto800 but it has 21 percent larger spaces in side but 8 percent short than ALTO800.

Disadvantages of NANO vs. Maruti Suzuki Alto 800

1. LPG/CNG/DIESAL version is Work In Progress. 2. Top Speed will be laser than Alto800. 3. Space for Language is less.

63

RESEARCH METHODOLOGY

64

RESEARCH METHODOLOGY

This chapter describes the methodology of the study. This project is based on information collected from primary sources. After the detailed study, an attempt has been made to present A STUDY OF NEW PRODUCT DEVLOPMENT WITH TATA NANO AND COMPRATATIVE STUDY ON MARUTI SUZUKI ALTO 800. The data had been used to cover various aspects like consumers preference and customers satisfaction regarding TATA NANO AND MARUTI SUZUKI ALTO 800. In collecting requisite data and information regarding the topic selected, I went to the residents of JAIPUR 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.

65

Research objectives

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 Tatas one lakh car .

o To study and compare between Tata Nano and Maruti Suzuki Alto 800.

o To study on customers buying behavior and preferences and views about Tata Nano and Maruti Suzuki Alto 800 by various methods of data collection.

66

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 Suzuki ALTO 800 two types of data collection methods were used. Primary Data Secondary Data

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. 67

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 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.

68

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 its used for the same purpose. The secondary data sources here in this project are: Websites: www.tatamotors.com,www.marutisuzuki.com,www.autocarindia.com,www.autobid.in,ww w.overdrive.in, Books: Auto Bid Magazine, Overdrive Magazine, Autocarindia Magazine

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DATA ANALYSIS AND INTERPRETAION

70

Various Results Of Analysis In The Form Of Charts

% of people who are aware of tata nano

yes no 3%

97%

The % of people who are aware of the Tatas 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. 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.

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Preferences Of Different Age Group Regarding Buying Of Nano.

8 7 6 5 4 3 2 1 0 15-30 31-45 yes 45-60 above 60 no not sure yes no 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. o Blue triangle indicates willingness to purchase Tata Nano. o Red triangle indicates that the respondent is not willing to purchase it o And green indicates that the respondent is not sure. While analyzing this chart, we can see that the young generation is egar to buy the product. While due to some misunderstandings about tatanano, the older generation doesnt desire to buy it or are not sure about it.

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Preferences Of The Respondents Regarding Buying Of Maruti Suzuki Alto 800 And Tata Nano

Preferences for buying maruti suzuki alto 800 or tata nano

maruti suzuki alto 800 tata 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: Maruti Alto800 Tata Nano by having a glance at the chart, we can see that majority went for Tata Nano. Maruti Suzuki Alto 800 got very less votes. This shows a tough time for Maruti Suzuki Alto800 in future.

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Views about success of Nano

views on success of nano

success 50% 50% not sure

The question asked here was, do you think Nano will be successful the options given were yes no not sure. Its very interesting to note here that none of the respondent said that Nano wont be successful. As shown in the chart, the portion of purple color which shows failure is not there at all. But again everybody does not believe in its success. As seen from the chart, 50% of the respondent has a doubt about success of Nano.

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Nano- A Peoples Car

No of People, 30

!!!

No of People, 44 No of People, 14

No of People, 12
Size Looks Innovation

Cost

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

Que1. Which brand of Cars do you prefer?

Maruti Suzuki alto 800 40% Tata Nano 60%

Interpretation:
Tata Nano 60 Maruti Suzuki alto 800 40

60% peoples prefer Tata Nano while 40% prefer Maruti Suzuki alto 800.

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

2.5

1.5 tata Nano 1 Maruti Suzuki Alto 800

0.5

0 Design Mileage Company Status Resale Value

Interpretation:

Tata Nano

Maruti Suzuki Alto 800

Design Mileage Company Status Resale Value

1 1 2 2

2 2 1 1

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Que3. Which brand of a Car do you like to buy?

45% tata (other cars) 55% Maruti Suzuki Alto 800 (other cars)

Interpretation:

Tata (Other Cars) 45%

Maruti Suzuki Alto 800 (Other Cars) 55%

55% people like to buy Maruti brand and 45% like to buy Tata brand.

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Que4. Which small car would you prefer to buy? Maruti Suzuki Alto 800 .Tata NANO Other..

20%

20%

Maruti Suzuki Alto 800 Tata NANO Other 60%

Interpretation:
20% peopleprefer to buy Maruti Suzuki as a small car. And 60%prefer Tata Nano as a small car. And remaining 20% people prefer other car.

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Que5. Do you think NANO is people's car? Yes No Cant say

5%

5%

Yes No Can't say 90%

Interpretation:
90% people says that nano is people car. 5%people say no. And remaining 5% cants say.

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Que6. Will Tata be able to maintain the price of nano in future if there is hike in cost of raw materials?
Yes No Cant say

10%

30% 60%

yes no can't say

Interpretation:

60% people say yes that Tata be able to maintain the price of nano in future if there is hike incost of raw materials. 30% say no. And remaining 10%cant say.

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Que7. What are the factors considered by you to buy a Tata Nano car? Price Quality Mileage Comforts

10% 10% PRICE 10% QUALITY MILEAGE COMFORTS 70%

Interpretation:
For the above question, among the total number of participants from, 70% of the participants answered that they buy Tata Nano Car for its price, 10% of them answered that they buy Nano for its quality, 10% of the participants stated that they buy Nano for its mileage and finally 10% of the participants stated that they buy Nano for its comforts.

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Que8. Which promotional offers attract you most?

15% 40% Free Gifts Price Offers 45% Any Other

Interpretation:

Free gifts 40% Price Offer

45% any other 15%

40% attracts for free gifts, 45% attracts for price offer and 15% attract on any other offer.

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Que9.Which of these factors affects your purchase?

30% 45%

Advertisment Suggestion from friends & relatives

15% 10%

Attractive offers brand Ambassadors

Advertisement Suggestion from friends and relatives Attractive Offers Brand Ambassadors

Interpretation:
30% people buy cars while watching AD on T.V, 15% buying from suggestion of friends & family, 10% buy cars by checking attractive offers and 45% buying cars while checking their brand ambassador.

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Que10. Which media of advertisement influence your purchase?

10% 5% 40% 15% Television newspaper brouchers hoarding 30% display

Television Hoarding

40% Newspapers 5% Display

30% Brochures 10%

15%

Interpretation:
40% buying through TV adv., 30% buying through newspaper adv., 15% buying through broachers, 5% buying through hording boards and 10% buying through display ads.

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Que11. How frequently do you purchase cars?

5% 27%

5% 21% once in a year once in a two years once in a 5 years once in a 10 years 42% once in a whole life

Once in a Year Once In a Five Year Once in a hole Life

Once in a Two Years Once in Ten Years

Interpretation:
5% Buyers purchase the car once in a Year. 21%Buyer purchase the car once in a Two Years. 42% Buyers purchase the car in Once In a Five Year. 27% Buyers purchase the car in once in ten Years. 5% Buyerspurchase the car in once in a whole Life.

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Que12. What according to you is the reasonable price of Cars?

20%

5%

10% Below 1 Lakh Once Lakh

30%

35%

1-2 Lakhs 2-3 Lakhs Above 3 Lakhs

Below One Lakh 5%

One Lakh

10% 1-2 Lakh 35%

2-3 Lakh 30%

above 3 Lakh

20%

Interpretation:
5% prefer car prize below 1 Lakh, 10% prefer car prize Rs. 1 Lakh, 35% prefer car prize between 1-2 Lakhs, 30% prefer car prize between 2-3 Lakhs and 20% prefer car prize above 3 lakhs.

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Que13. If your preferred brand is not available for repeat purchases then what will you do?

30%

30% Postpone your purchase Switch over to other brand 40% go to the other showroom to search for your preffer brand

Postpone your purchase Switch over to other brand Go to the other showroom to search for your preferred brand

30% 40% 30%

Interpretation:
30% people postpone their purchase while 40% switch over to another brand and 30% go to another showroom for their prefer brand car.

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Que14. If another brand of the same product appears in the market, will you prefer to stop? Buying this brand and buy the new brand?

15%

20%

No, not at all I may consider 35% 30% No, I shall not can't say

No, not at all No, I shall not

20% 35%

I may consider cant say

30% 15%

Interpretation:
20% will not stop buying their brand while 30% while consider about this and 35% shall not change their brand and 15% cant say about this.

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Que15. If you dont 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 Between 45-60 Between31-45 Above 60

Gender:

M/F

Phone Number: Marital status: Education: Profession:

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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? Its just cool. One should definitely buy it. Cheap As it is, but very smart and sexy. I would defiantly buy it. 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.

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The disbelief kept piling up and up and was further compounded by the competitors adding their own mite to the speculations.

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.

So Nano is not a basically a luxury cars but it can fulfilled the all capacity for middle class people.

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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 Suzuki Alto 800. Tata has succeeded in value engineering of the product and its great success for Tatas. Its something on which India can feel proud of. Nano has been developed effectively.

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Appendix

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QUESTIONNAIRE
PERSONAL DETAILS Name: Address: Age: Between 15-30 Between 45-60 Between31-45 Above 60

Gender:

M/F

Phone Number: Marital status: Education: Profession:

Dear Respondent

I, DIWAKAR PALIWAL student of MBA, APEX INSTITUTE OF MANAGEMENT &SCIENCE, JAIPUR, is working on project NEW PRODUCT DEVELOPMENT WITH TATA NANO AND COMPARITIVE SYUDY ON MARUTI SUZUKI ALTO 800 The following questions are the main instrument of my survey. So please give your opinion up to the best of your knowledge.

Que1. Which brand of Cars do you prefer?

Maruti Suzuki alto 800

Tata Nano

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Que2. Rank the brands of cars according to your preference? (TATA NANO V/S MARUTI SUZUKI ALTO 800) (1 for most preferred)?
Design Mileage Company Status Resale Value

Que3. Which brand of a Car do you like to buy?

Tata (Other Cars) Maruti Suzuki Alto 800 (Other Cars)

Que4. Which small car would you prefer to buy? Maruti Suzuki Alto 800 .Tata NANO Other..

Que5. Do you think NANO is people's car? Yes No Cant say

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Que6. Will Tata be able to maintain the price of nano in future if there is hike in cost of raw materials?
Yes No Cant say

Que7. What are the factors considered by you to buy a Tata Nano car?

Price Quality Mileage Comforts

Que8. Which promotional offers attract you most?

Free gifts Price Offer any other

Que9.Which of these factors affects your purchase?

Advertisement Suggestion from friends and relatives Attractive Offers Brand Ambassadors

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Que10. Which media of advertisement influence your purchase?

Television Newspapers Brochures Hoarding Display

Que11. How frequently do you purchase cars?

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

Que12. What according to you is the reasonable price of Cars?

Below One Lakh One Lakh 1-2 Lakhs 2-3 Lakhs Above 3 Lakhs

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Que13. If your preferred brand is not available for repeat purchases then what will you do?
Postpone your purchase Switch over to other brand Go to the other showroom to search for your preferred brand

Que14. 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 cant say

Que15. If you dont like to change to the new brand, then what are the reasons for continuing to purchase the old brand?

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BIBLIOGRAPHY

Books -:
Kotler Philip Marketing Management, millennium edition, prentice Hall

inc.Publication.
Kothari C.R.Research Methology, 3rd Edition,New age Publication Sharma D.D.Marketing Research,3rdEdition,Publication Sultan Chand & son

Publication

Magazines-:

Auto-India Auto-Car
Auto Bid Magazine Overdrive Magazine Autocarindia Magazine

Websites -:

http://www.wikipedia.com/ http://www.tatamotors.com/ http://www.maruti.com/

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