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TRANSCRIPT
A
TERM PAPER
ONNEW PRODUCT DEVELOPMENT
FOR TATA NANO“A SURVEY IN KOTA”
Submitted in partial fulfillment for the award of
Degree ofMaster of Business Administration, 1st Semester
(2010-2012)
Department of Management StudiesJai Narain Vyas University, Jodhpur
Under the supervision of: Submitted by:
Dr.Meeta Nehalani Rahul Sharma
Dept. of management studies MBA Semester 1
CERTIFICATE
DEPARTMENT OF MANAGEMENT STUDIES
JAI NARAIN VYAS UNIVERSITY, JODHPUR
This is to certify that Term Paper entitled
“New product development for Tata Nano
Survey in kota”
Is submitted by Rahul Sharma of first semester in partial fulfillment of MBA degree course. The student has sincerely
completed the Term Paper in our institute. This work was prepared under my guidance and supervision.
Date: Dr. Meeta Nihalani
Place: Kota Department of Management Studies
Jai Narain Vyas University, Jodhpur
ACKNOWLEDGEMENT
I take this opportunity to express my indebtedness and convey my sincere thanks and gratitude to all those
who have directly or indirectly helped and contributed towards the completion of this project.
First and foremost, I would like to thank my supervisor and head of Department,Department of Management
Studies, J.N.V.University,jodhpur, for providing me this opportunity. I would also like to thank Harish Verma
sir for giving me guidelines in my project report.
Last but least, I would like to thank all the respondents who invested their valuable time in my study and my
family and friends for their valuable suggestions and cooperation in doing the work on this term paper.
Rahul Sharma
MBA Semester 1
CHEPTER SCHEME:
1.) Introduction
meaning of product
new product development
2) Research Objectives
3) Research Methedology
4) Stages of new product development.
5) Introduction of Tata Nano
Company profile
Expansion
Aquisition
6) Tata Nano And New Product Development
7) Some Myth of Tata Nano
8) Comparaison Between Tata Nano And Maruti 800
9) Ananlysis of Data Collection
10) Various Charts
11) Some Feedback About Tata Nano
Positive response
Negetive response
Mixed response
12) Conclusion
13) Bibliography/ References
Meaning of product:
Meaning of new product:- Eg. Milk , computer , shoes, service after sales, railways services
etc. a product can be divided in to two different categories.
Tangeble product
Intangeble product
Tangible products are known as goods that can be touched, felt, seen. Eg. Computer, mobile
phone etc.
Intangible products are known as services that can not be touched, seen as the customer can
feel and experience only after utilyzing it Eg. Services after sales.
Introduction on new product development:
In business and engineering, new product development (NPD) is the term used to describe the complete
process of bringing a new product or service to market. There are two parallel paths involved in the NPD
process: one involves the idea generation, product design, and detail engineering; the other involves market
research and marketing analysis. Companies typically see new product development as the first stage in
generating and commercializing new products within the overall strategic process of product life cycle
management used to maintain or grow their market share.
But let’s start with a definition. Our definition of NPD starts with the identification of an opportunity in the
market (“somebody needs a product to do this”) and ends with the successful launch of the product.Every
company must develop new products. New-product development shapes the company’s future. The dynamics
of markets, technology, and competition have brought changes to virtually every market sector and have made
new product development one of the most powerful business activities. The monumental changes that
constantly impact commerce have forced companies to innovate with increasing speed, efficiency, and quality.
In turn, this has made new product development one of the most complex and difficult business functions.
However, firms must innovate in order to survive. The power of innovation is revealed in numerous studies,
which show that companies leading their industries attribute about half of their revenues to products developed
in the most recent five years. By comparison, companies at the bottom of their industries achieve
approximately one-tenth of their sales from new products. A firm's new product development efforts are shaped
by its size, as well as the nature of the industry in which it operates. New products may be defined as any
product, service, or idea not currently made or marketed by a company, or which the consumer may perceive as
new. Many types of new products exist, from never-seen-before products like Apple's personal communicator,
to repositioned standards like Sears' shift to Sears Brand Central.
New product development :
A product can be considered new under the following situations.
1. New-to-the-world products: New products that create and entirely new market.
2. New product lines: New products that allow a company to enter an established market for the first time.
3. Additions to existing product lines: New products that supplement a company’s established product
lines (package sizes, flavors, and so on).
4.Improvements and revision of existing products: New product s that provides improved performance or
greater perceived value and replaces existing products.
4. Repositioning: Existing products that are targeted to new markets or market segments.
6. Cost reductions: New products that provide similar performance at lower cost.
Why do new products fail?
1. A high level executive pushes a favorite idea through in spite of negative market research findings.
2. Overestimation of market size – Sometimes companies makes mistakes in estimating the correct market
size; it may results in the failure of the launched product.
3. Product design problems – Wrong design of product may lead to the failure or less success in the
competitive market.
4. The product is incorrectly positioned in the market, not advertised effectively or overpriced.
5. Cost of product development is higher than the expected.
6. Competitive actions – sometimes competitors come up new and strong strategies which are not expected
by the company.
Stages of new product development
Before the introduction of the product in to market, it goes through several stages of development. These stages
are known as stages of new product development. It includes following.
1. Idea generation – We will see whether the idea is worth consideration or not?
2. Idea screening – Is the product idea compatible with company objectives, strategies and resources?
3. Concept development and testing – Can we find a good concept for the product that consumers say they
would try?
4. Market strategy – Can we find a cost effective, affordable marketing strategy?
5. Business Analysis – will the product meet our profit goal?
6. Product development – Have we developed a technically and commercially sound product?
7. Market testing – Have product sales met expectations?
8. Commercialization – Are product sales meeting expectations?
IdeaGeneration
IdeaScreening
ConceptDevelopmentand Testing
MarketingStrategy
BusinessAnalysis
ProductDevelopment
TestMarketing
Commercialization
A systematic approach that increases the odds of success
1. Idea generations:
1. Companies seek new ideas to enhances the performance of the exiting products and to innovate new
ideas. The stages is called idea generations stages. The Major sources of new product ideas include internal
sources, customers, competitors, distributors and suppliers. Almost 55% of all new product ideas come from
internal sources according to one study. Companies like 3M and Toyota have put in special incentive
programs or their employees to come up with workable ideas.Almost 28% of new product ideas come from
watching and listening to customers. Customers: About 30% of new product ideas come from analysis of
competitors’ products. The company can watch competitors’ ads, press releases and write-ups in the press
about their activities. Companies also buy competitors information and pay for industrial
espionage.Resellers and others who are close to the market, can often pass on information about new
developments. Other sources are trade magazines, shows and seminars, market research firms, government
reports, advertising agencies and new product consultants. Employees throught the companies can be
sources of ideas. Toyota claims that employee submit two million ideas annually over 85% of which
implemented.Companies also find good ideas by researching competitor’s products and services.they can
find out what the customers like and dislike about their competitor’s products.ideas can also come from
investors. External research, surveys, industrial publications research,and development etc.But main source
of idea generation is the customers by their grievances ,complains and feedback. However, although ideas
Concept
Screening*
Test Marketi
ng*
Opportunity
Identification
Idea Genera
tion
Concept Develop
ment
Product Developme
ntPositioning Developme
nt
Commercial-
ization
*”Stage Gates”
Marketing Plan
Development
can flow from many sources, it is not feasible to implement all the ideas generated due to lack of time and
capital.
2.Idea screening:-
The main purpose of idea generations is to collect a large number of ideas. however, all ideas can be
commercially viable. therefore companies filter the less viable ideas with the help of systematic process.
Companies use various parameters to screen the ideas such market size, technical, capabilities and potential
completions etc.
The following issues will also help the companies to analysis the attrectiveness of the ideas.
Whether the product idea match the exiting product of the company.
The to which the new product cannibalize the sale of the exiting product.
Company’s ability to produce and market the product.
Buying behavior and probable changes in environment.
Errors
Drop error where firm reject a very good idea.
cro error where firm select a poor idea.
3.Concept testing and development:-
All ideas that survive in the process if screening will be studies in detailed. they will be developed into mature
product. At this stage, the idea is submitted for external evaluation to get feedback from the market. it helps the
firm to collect the important information like customers initial reaction towards the product development.
During new product idea is described in the form of one or more benefits. An attractive idea has to be
developed into a Product concept. As opposed to a product idea that is an idea for a product that the company
can see itself marketing to customers, a product concept is a detailed version of the idea stated in meaningful
consumer terms. This is different again from a product image, which is the consumers’ perception of an actual
or potential product. Once the concepts are developed, these need to be tested with consumers either
symbolically or physically.
4.Marketing strategy:- This is the next step in new product development. The strategy statement
consists of three parts: the first part describes the target market, the planned product positioning and the sales,
market share and profit goals for the first few years. The second part outlines the product’s planned price,
distribution, and marketing budget for the first year. The third part of the marketing strategy statement
describes the planned long-run sales, profit goals, and the marketing mix strategy.
The following a sueccsseful concept test, the new product manager will develop a preliminary strategy plan
the first part describes the target market size, structure, behavior for the the first few year.
the second part outlines the planned price distribution strategy and marketing budgets for the first year.
the third part of marketing strategy plan describes the long run sales and profit goals and the marketing
strategy over a time.
5..Business analysis;-
After management develops the product concept and marketing strategy, it can evaluate the business
attractiveness. Business analysis are the first in –depth financial evaluation of the new product to be developed.
Here management needs to prepare sales cost and profit projection to determine whether to stisfy company
objectives. If they do the concept moves to development stage.
Swot analysis will be prepared by the organization at this stage. It includes total sales estimation . estimations
of cost and profit.
6.. Product development:-
At this stage, detailed technical analysis is conducted to know whether the product produced at costs is low
enough to make final price attractive to the customers.
Here the working model and prototype is developed to disclose all tangeble and intangeble attributes of the
product. A product protocol is prepared which contains all the attributes of expected product. Ones the protocol
has been developed it is handed over to research and development to develop the prototype of the the product.
7.Test marketing:-
Test marketing is a stage where product is introduced in the few selected cities. During this stage the company
has to fate the following expenses.
High advertisement
High manufacturing cost
High distribution cost etc.
For test the product market needs to make a decision on the following issues.
The no. of the cities in which the product is to be tested.
Geographic location of the cities.
By this way the company can know the customer response , feedback, and suggestions.
Complaints and other changes are required for product modifications.
After successfully laughing the product in the selected cities company launches the 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 employee of the company
.
Beta testing: it is carried out at the customers side. Generally it is applicable for industrial product where
customization takes place.
Gamma testing: it is carried out on long term basis where customers use the product extensively and give
response after long period of time. Say six month.
8.Commercialization:-
The result of test marketing help marketers to decide changes that are needed in the marketing mix before
entering in to the market. It also help the the marketers to decide the amount of production distribution stategy,
selling effort and other issues like providing guarantees and after sales service etc. the enter the market during
the commercialization stage.
The company launching a new product must make four decisions:
A.WHEN : The first decision is introduction timing - whether the time is right to introduce
the new product. If it will eat into the sales of the company's other products, its introduction may be delayed. If
it can be improved further, or if the economy is down, the company may wait until the following year to launch
it.
B.WHERE : The company must decide where to launch the new product. Should it be in a
single location, or region, several regions, the national market or the international market? Few companies
have the confidence, capital and capacity to launch new products into full national or international distribution.
They will develop a planned market rollout over time. In particular, small companies may enter attractive cities
or regions one at a time. Larger companies may quickly introduce new products into several regions or into the
national market.
Companies with international distribution systems may introduce new products through global rollouts.
Colgate-Palmolive used a 'lead-country' strategy for its Palmolive Options shampoo and conditioner: it was
first introduced in Australia, the Philippines, Hong Kong and Mexico, then rapidly rolled out into Europe, Asia,
Latin America and Africa. However, international firms are increasingly introducing their new products in
swift global assaults, Procter & Gamble did this with the Pampers Phases line of disposable nappies.
C. TO WHOME: Within the roll-out markets, the company must target its distribution and promotion to
customer groups who represent the best prospects. These prime prospects should have been profiled by the
firm in earlier research and test marketing. For instance, Psion's Series 5 palmtop organizer, with a price tag of
£500, is targeted at high income executives. When The European newspaper launched a multimedia version of
the paper, it was initially targeted at professionals, who were sent an electronic version of the paper via
telephone to personal computers at work. Generally, firms must fine-tune their targeting efforts, starting with
the innovators, then looking especially for early adopters, heavy users and opinion leaders.
D.HOW : The company also must develop an action plan for introducing the new product into the selected
markets. It must spend the marketing budget on the marketing mix and various other activities.
RESEARCH OBJECTIVES:
To study about how a new product-Tata Nano was developed based on marketing theory of “new product
development”.
To study about what made possible for Tata Nano to develop and produced a car for just Rs. 1 lakh.
To study the objectives and target customers of Tata one lakh’s car.
To study and compare between Tata Nano and Maruti 800 car.
To study on consumer buying behavior and preferences and views about Tata Nano and Maruti 800 by
various method of data collection.
Research Methedology
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
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.
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.
Sample size:
100 people
Sample design:
All working people are include both the gender i.e males and females irrespective of their educational level.
Area of research:
kota
Sampling technique:
Random
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.
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
Books
Statistical analysis: The collected data were subjected to various statistical analysis for the presentation in
terms of percentage, tables, pie-charts, and column charts
Tool’s for measurement:
Open end questionnaire.
Introduction on Tata Motors:-
Company profile
Tata Motors Limited is India's largest automobile company, with
consolidated revenues of Rs. 92,519 crores (USD 20 billion) in
2009-10. It is the leader in commercial vehicles in each segment,
and among the top three in passenger vehicles with winning
products in the compact, midsize car and utility vehicle segments.
The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer.
Established in 1945. When the the company began making trains. The company's manufacturing base in India
is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar
(Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an
industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and
Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). Tata Motors, the
first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004),
has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata
Motors has operations in the UK, South Korea, Thailand and Spain. Tata Motors is equally focussed on
environment-friendly technologies in emissions and alternative fuels. . It has developed electric and hybrid
vehicles both for personal and public transportation. Tata Motors is committed to improving the quality of life
of communities by working on four thrust areas – employability, education, health and environment. Expansion
Expansion
The FIRST generation Tata Indica V2's excellent fuel economy, powerful engine and aggressive marketing
strategy made it one of the best selling cars in the history of the Indian automobile industry.
After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle
market in 1991 by launching the Tata Sierra, a multi utility vehicle. After the launch of three more vehicles,
Tata Estate (1992, a stationwagon design based on the earlier 'TataMobile' (1989), a light commercial vehicle),
Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility vehicle). Tata launched the Indica in
1998, the first fully indigenous passenger car of India. Though the car was initially panned by auto-analysts,
the car's excellent fuel economy, powerful engine and aggressive marketing strategy made it one of the best
selling cars in the history of the Indian automobile industry. A newer version of the car, named Indica V2, was
a major improvement over the previous version and quickly became a mass-favourite. Tata Motors also
successfully exported large quantities of the car to South Africa.The success of Indica in many ways marked
the rise of Tata Motors.[12]
Acquisitions
In 2004 Tata Motors acquired Daewoo's truck manufacturing unit, now known as Tata Daewoo
Commercial Vehicle, in South Korea.
In 2005, Tata Motors acquired 21% of Aragonese Hispano Carrocera giving it controlling rights of the
company.
In 2007, Formed a joint venture with Marcopolo of Brazil and introduced low-floor buses in the Indian
Market.
In 2008, Tata Motors acquired British Jaguar Land Rover (JLR), which includes the Daimler and
Lanchester brand names.
In 2010, Tata Motors acquired 80% stake in Italy-based design and engineering company Trilix for a
consideration of €1.85 million. The acquisition is in line with the company’s objective to enhance its
styling/design capabilities to global standards
Tata Nano- one l lakh car project
People’s car
“A promise is a promise.” Said Ratan Tata, chairman, Tata motors, on 10th January 2008, when the Nano was
first displayed in the auto show in delhi. The Nano did not grab the attention of only Indians, the entire world
had their eyes glud to the world cheapest car. A truly people’s car this time is from india. Through the dealer
price is 1 lakh, the price on road, when it will be launched, will reached around rs. 125000 but it will be still
more affordableand will be more ecofriendly then most others cars giving a mileage 23km/lit. providing a car
worth rs. One lakh was the dream of chairman of Tata motors, Mr. Ratten Tata.
Tata nano…….
The ONE lakh that car drives ONE
billion dreams…
TATA NANO
In January 2008, Tata Motors launched Tata Nano, the least expensive
production car in the world at about Rs. 100,000 . The city car was
unveiled during the Auto Expo 2008 exhibition in Pragati Maidan, New
Delhi. The Tata Nano car which is often called as the “people’s car” was
launched on March 23, 2009. The sales of the Tata Nano car kick-started
from July 2009. Priced at a mere Rs.1,15,000. the Tata Nano car has been
a hit amongst the middle class till date, for whom the car was quite
affordable.The introduction of the Tata Nano car received attention mainly because of two specific reasons.
In January 2008, Tata Motors launched Tata Nano, the least expensive production car in the world at
about Rs. 100,000 . The city car was unveiled during the Auto Expo 2008 exhibition in Pragati Maidan, New
Delhi. The Tata Nano car which is often called as the “people’s car” was launched on March 23, 2009. The
sales of the Tata Nano car kick-started from July 2009. Priced at a mere Rs.1,15,000. the Tata Nano car has
been a hit amongst the middle class till date, for whom the car was quite affordable.The introduction of the
Tata Nano car received attention mainly because of two specific reasons.
The car being priced relatively at a lower rate than other cars drew attention from the commoners.
The other reason was the prolonged Singur (West Bengal) agitation, that the company Tata Motors had to
face while setting up a factory in the area. Charges of land acquisition were drafted against them by the
farmers and the company forcefully had to stop putting up the plant in Singur as a result of chaos and
disturbance in the area.
The introduction of the Tata Nano car was entirely planned out and
designed by the chairman of the Tata Motors, Mr. Ratan Tata. Although
several speculations regarding the Tato Nano car being a “four-wheeled
auto-rickshaw” with no ample space or whatsoever did rounds in the media,
still the Tata Nano car proved itself of being a properly built car. The Tata
Nano car possesses extensive cost-cutting features that includes a single
wind screen wiper instead of a double one, it has no power steering, the door opener was simplified et.al.After
removing its base from Singur, Tata Motors had decided to set up a plant in Gujarat. No wonder the arrival of
the Tata Nano car has stirred up a lot of news for a couple of years, but yes, the Tata Nano car is launched and
is already gathering mixed reviews from the buyersTata has faced controversy over developing the Nano as
some environmentalists are concerned that the launch of such a low-priced car could lead to mass
motorization in India with adverse effects on pollution and global warming. Tata has set up a factory
in Sanand, Gujarat and the first Nanos are to roll out summer 2009.
Tata Nano Europa has been developed for sale in developed economies and is to hit markets in 2010 while the
normal Nano should hit markets in South Africa, Kenya and countries in Asia and Africa by late 2009. A
battery version is also planned. India's largest vehicle maker, Tata Motors is planning to launch the European
variant of Tata Nano, known as 'Nano Europa' in India. The new luxury variant of the world's cheapest car, Tata
Nano, will have power steering, powerful engine, air bags and ABS as safety features. Nano Europa was
displayed in geneva moter show in 2009.
According to MD PM Telang of Tata Motors India, the company is looking forward to launch the fully loaded
car in India when it gets ready for its debut in Europe market. He added that Nano Europa will have several
features like a more powerful engine, power steering, ABS, airbags.
The structural strengths, indicate a longer wheelbase and interior design modifications to suit the European
market. Speculations say that, the Nano Europa will be powered by 3 cylinder sporty all-aluminium MPFI
engine with a 5-speed automatic transmission. Tata Motors is developing this petrol engine which will be fuel
efficient and will also have lower CO2 emission, lesser than 100 gm/km. We can expect the Nano Europa in
2012.
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.
Details Of Nano
1.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
2.Variants:
Standard
Deluxe (with AC)
3.Future:
Diesel Variant
Exports outside India or assembly plants outside
4.Comparison
8% less in length (bumper to bumper) with respect to Maruti 800 21% more in inner space with respect
to Maruti 800
5.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.
6.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
strength Price, mileage, style, brand name, all weather vehicle, first innovation.
weekness Fiber body, low suspension power,low engine capacity, light vehicle, not
suitable for hilly areas, delay due to singur violation.
opportunity Bikers can be motivated, auto rickshaw & second hand market can be
motivated. large market for selling. Awareness in the market.
Threat Other competitors (Bajaj, Maruti), not eco-friendly, Govt. may come with
new rule.not sure to hit rural and semi urban market.
New product development and Nano
As seen before, A product can be considered new under the following situations.
New to the world product
New product lines
Additions to the existing product lines
Improvement and revision 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
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".
Idea Generation And Nano
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 four-wheelers," 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,. 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.
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 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
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? 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 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 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. 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
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
.
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. 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 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 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.
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 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
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 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, 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.
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.
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.
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
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.
v/s
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.
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:
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:
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
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
Results and analysus of the questions are asked below:
Q1. Instead of purchasing of byke, will you prefer to go for NANO?
7% 15%
20%
39%
20%
strongly disagreedisagreeneturalagreestrongly agree
This pie chart show that 39% people agree that NANO should be purchased instead of byke. While 20%
People are strongly agree. And 19% are netural.
Q2. Which feature of NANO attracts you more ,that inspire you to go for for NANO?
52%
12%
35%
pricedesignmileageintrrior spaceall of the above
This pie chart show that 53% people attracts towards NANO because of low price and 35% like
because better mileage.
Q3. Do you think NANO is people’s car ?
2%7%
22%
44%
24%
strongly disagreedisagreeneturalagreestrongly agree
This pie chart shows that 44% people think NANO is made for people which means every class people
can afford NANO and 24 people are also strongly satisfied with this question.
Q4. Which small car would you prefer ?
25%
33%
42%
tata nanomaruti 800others
On the basis on this pie chart we can say that 33% people prefer maruti 800. While 42% want to go for
other options.
Q5. If the price of NANO increases, would you still purchase it?
4%
50%
46%
yesnocan't say
This pie chart shows that 50% would not purchase TATA NANO is price increase in future. While 46%People are netural.
Q6. Will there be traffic problem with the introduction of NANOon Indian roads?
2% 12%
34%
29%
22%
strongly disagreedisagreeneturalagreestrongly agree
On the basia of this pie chart we can say that 34% people are netural they don’t think that traffic problem Increase duu to introduction of TATA NANO while 29% people are agree.
Q7. Can you trust NANO for seafty ?
17%
39%
28%
15%1%
strongly disagreedisagreeneturalagreestrongly agree
This pie chart show that 39% people don’t trust on TATA NANO when it comes in seafty. While 28%
People are netural about features of TATA NANO.
Q8. Will TATA be able to maintain the price of NANO in future if there is hike in cost of raw
materials ?
20%
30%33%
16% 1%
strongly disagreedisagreeneturalagreestrongly agree
According tp this pie chart 33% people are netural. They think future price will depend of company
policies. How they utilise the resources if prices of raw material increases in near future. But 30%
people are disagree with question they think that TATA will not be able to sale TATA NANO in same
price if price incerases in future.
Q9. Do you think NANO will be as successful as Maruti 800 ?
5%
30%
22%
43%yesnocan't saydepend upon performance
According to this pie chart we can compare tata nano with maruti 800 here 43% people say that success
of tata nano will depend on performance. If it satisfy all the expectation of consumer it will definatily
get good response. But on other hand 30% people say that tata can not get response as maruti has got.
Q10. Are you satisfied with NANO’s service ?
1% 17%
49%
30%
2%
strongly disagreedisagreeneturalagreestrongly agree
In this pie chart 49 % people have no knowledge about nano’s services. While 31% people agree that
We are aware with nano sales service.
Q11. What is the rate of fuel consumption for NANO ?
17%
55%
28%
lowaveragebetter
According to this pie 28% people say that nano can be better option for those who can not afford car
because of low mileage. While 55% people think that fuel consumption of nano is better then others
small cars.
Q12. Participants are fully aware of NANO’s offers and promotions ?
4%9%
52%
30%
5%
strongly disagreedisagreeneturalagreestrongly agree
55% people are not aware. While 30 % people agree with nano’s offers and promotions.
Q13. Why will you NANO ?
60%
1%
7%
24%
7%
low pricecomfert and convenienceafter sales servicepatriotism it's an indian carattractive looksI wan't to buy
On the basis of this pie chart we can say that people want to purchase nano because of low price. While
25% people want to purchase nano because it’s an indian car and brand value of tata moters in the eyes
of customers.
Q14. Do you think NANOis designed and built according to India’s local weather and road conditions ?
12% 9%
40%
34%
5%
strongly disagreedisagreeneturalagreestrongly agree
In this pie chart 40% people don’t have knowledge about nano whether it has been developed according
To india’s local weather and road conditions. While 34% people are agree that nano has been developed
To keep in view of india’s local weather and road condition.
Q15. According to your opinion what can be done to improve NANO’s sales in local markets ?
49%
29%
22%
nano should provide new modelsimprove quality should reduce car pricelower instalments
This pie chart shows that 49% people thin that new modal of tata nano should be launched in the market
To boost up sales and to capture market. On the others hand 29% people say that tata moters should add
new and unique features to improve the quality of the car so that sales target can be achive effectively.
Q16. Over saisfaction level has derived as expected from NANO ?
5% 22%
40%
33%
strongly disagreedisagreeneturalagreestrongly agree
This pie chart is indicating overall perception of people towards tata nano. What they think about tata
nano. Here 40% people have no view about tata nano. But 33% people are satisfied with tata nano.
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.
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.
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.
Total variance table :
This table indicates the amount of variance explained by various primary factor post extraction and the impact of the same.
As observed from the table given below that primary factor (3) contributes to 54% of the customers belief. Out of all the factors, perception to the nano is the factor contributing the most significant portion on study i.e. 27%.
Further secondary function (2) contribute to 23% of customer belief.
Communalities
Initial Extraction
Q1 1.000 .790
Q3 1.000 .757
Q6 1.000 .949
Q7 1.000 .670
Q8 1.000 .768
Q10 1.000 .661
Q12 1.000 .875
Q14 1.000 .866
Q16 1.000 .561
Extraction Method: Principal Component Analysis.
Total Variance Explained
Compon
ent
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %
Primary factor
1 2.442 27.138 27.138 2.442 27.138 27.138
2 1.244 13.822 40.961 1.244 13.822 40.961
3 1.170 13.004 53.965 1.170 13.004 53.965
Secondary factor
4 1.026 11.403 65.368 1.026 11.403 65.368
5 1.015 11.274 76.642 1.015 11.274 76.642
6 .604 6.716 83.359
7 .588 6.534 89.893
8 .505 5.609 95.501
9 .405 4.499 100.000
Extraction Method: Principal Component Analysis.
Scree Plot Diagram:
The diagram given below indicates the impact of each variable in the entire customer belief levels. As a process, multiple factors making significant impact on the said hypothesis are ascertained and thereon the variance is evaluated.
five factors having eigenvalue >1 have been statistically obtained but in order to improve effectiveness of the study, we have only considered first 3 factors as our primary influencing factors. The remaining factors are considered as secondary influencing factors.
CONCLUSION:
On the basis of the findings and observations given above, it can be concluded that the study holds sound on every aspect of the hypothesis taken as an assumption i.e. tata nano is the cheapest car available in india and it is better then maruti 800 in some area like in services and moleage. And it hass been developed specially for lowel class people. Most of the factors which have been identified as a result of factor analysis strengthen the belief laid as a foundation of this study.
Primary Factors
Secondary Factors
Five factors having eigen-value >1 have been statistically obtained but in order to improve effectiveness of the study, we have only considered first 5 factors as our primary influencing factors.
component matrix
1 2 3 4 5
Q1 0.656 -0.379 0.053 0.083 -0.461
Q3 0.636 -0.309 -0.354 0.357 0.066
Q6 0.017 -0.459 0.286 0.05 0.808
Q7 0.628 0.048 0.062 -0.519 -0.02
Q8 0.379 0.691 0.154 -0.279 0.215
Q10 0.721 0.149 0.188 0.243 0.158
Q12 0.11 0.325 0.636 0.578 -0.135
Q14 0.171 0.431 -0.702 0.327 0.228
Q16 0.731 -0.085 0.005 -0.205 0.056
Primary Factors:
Factor 1: 1,3,7,10,16 - perception Factor 2 : 8 - price stabilityFactor 3 : 12,14 - product promotion and specification
Secondary Factors:
Factor 4 : 6 - traffic problem
* The factors indicated in red above are the ones having negative impact of the entire variance.
Conclusion
Reccomendation
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.
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.
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.
In brief we can say that nano is specially made for middle and higher class people. Because middle class
people Have many option in this sagment. If we compare tata nano with maruti 800,30 % people think thak tata
nano will not be able to perform as maruti 800 did in the market. and overall result of questionnaire shows that
40 % people are netural about overall Saisfaction of tata nano and 22% people are satisfied with tata nano.so
major portion of customer are showing that Tata Nano can not perform as Maruti 800 and others small car. I cn
reject null hypothisis H(2), Nano is better than Maruti 800, which i have written in my synopsis. and we have
to take alternate hypothsis A(2) means Maruti 800 is better than Tata Nano.
References:
Ulrich, Karl T. and Eppinger, Steven D (2004) Product Design and Development, 3rd Edition,
McGraw-Hill, New York, 2004
Ullman, David G. (2009) The Mechanical Design Process, Mc Graw-Hill, 4th edition
Cooper,R.G. Predevelopment activities determine new product success, in: Industrial Marketing
Management,Vol.17 (1988), No 2,pp. 237-248
Cooper R.G., Edgett, S.J.(2008), Maximizing productivity in product innovation, in: Research
Technology Management,March 1, 2008
Koen, Peter A. (2004), "The Fuzzy Front End for Incremental,Platform,and Breakthrough
Products", PDMA Handbook of New Product Development, 2nd Ed.: 81–91
Bibliography:
Websites
http://en.wikipedia.org/wiki/tatanano
www.google.co.in
www.carblogindia.com/cars
www.carblogindia.com/tata-nano-vs-maruti-800/
http://www.pdma.org/npd_glossary.cfm
www.vedamsbooks.com
www.tdiindia.com
DEPARTMENT OF MANAGEMENT STUDIES JAI NARAIN VYAS UNIVERSITY
Questionnaire on tata nano Survey in kota
NAME: ……………………………………
AGE: ……………………………………...
EDUCATION: ……………………………
GENDER:
Male [ ] Female [ ]
OCCUPATION:
Self Employed [ ] Job [ ]
INCOME: Per year
Below 3 lac [ ]
3 lac- 5 lac [ ]
5 lac- 10lac [ ]
10 lac and above [ ]
Not earning presently [ ]
1.Instead of purchasing a bike, will you prefer to go for NANO?
Strongly disagree Disagree Neutral Agree Strongly agree
[ ] [ ] [ ] [ ] [ ]
2. Which feature of NANO attracts you more, that inspires you to go for
NANO?
Price [ ] Design [ ]
Mileage [ ] Interior space [ ]
All of the above [ ]
3. Do you think NANO is the people’s car?
Strongly disagree Disagree Neutral Agree Strongly agree
[ ] [ ] [ ] [ ] [ ]
4. Which small car would you prefer to buy?
Tata NANO [ ] Maruti 800 [ ] Other.......... [ ].
5. If the prices of NANO increases, would you still purchase it?
[ ] Yes No [ ] Can’t say [ ]
6. Will there be traffic problem with the introduction of NANO on Indian
roads?
Strongly disagree Disagree Neutral Agree Strongly agree
[ ] [ ] [ ] [ ] [ ]
7. Can you trust NANO for safety?
Strongly disagree Disagree Natural Agree Strongly agree
[ ] [ ] [ ] [ ] [ ]
8.Will Tata be able to maintain the price of nano in future if there is hike in cost of raw materials
Strongly disagree Disagree Neutral Agree Strongly agree
[ ] [ ] [ ] [ ] [ ]
9. Do you think will be as successful as maruti 800?
Yes [ ] No [ ]
Can’t say [ ] depends upon performance [ ]
10. Are you satisfied with Nano’s service?
Fully dissatisfied Dissatisfied Neutral Satisfied Fully satisfied
[ ] [ ] [ ] [ ] [ ]
11. What is the rate of fuel consumption for Nano?
Low [ ] Average [ ] Better [ ]
12. Participant is fully aware of Nano’s Offer’s and Promotions?
Strongly disagree Disagree Neutral Agree Strongly agree
[ ] [ ] [ ] [ ] [ ]
13. Why will you buy Nano?.
Low Price [ ] comfort and convenience [ ]
After sales service [ ] patriotism It’s an Indian car [ ]
Attractive looks [ ] I wan’t to buy [ ]
14. Do you think Nano is designed and built according India’s local weather and
road conditions?
Strongly disagree Disagree Neutral Agree Strongly agree
[ ] [ ] [ ] [ ] [ ]
15. According to your opinion what can be done to improve Nanos’ sales in local
markets?
Nano should provide new models [ ]
Improve quality and so that car maintainence cost is decreased. [ ]
Should reduce car prices [ ]
Lower instalments [ ]
16. Overall satisfaction level has derived as expected from Nano?
Fully dissatisfied Dissatisfied Neutral Satisfied Fully satisfied
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