Minor project on

Segmentation, targeting, positioning Of Tata nano

In partial fulfillment Of bachelor of business administration by:sangeeta anand 00814001710

Acknowledgment

I wish to express my gratitude to honorable supervisor for the Project coordinator MRS. MANSI because of her guidance only; the Project work could be meaningfully accomplished. She always extended her valuable advices and suggestions during the Project and always proved to be a source of inspiration for me. I wish to put on record the same.

I also acknowledge my heartfelt gratitude to my friends for their excellent efforts and encouragements, which had been provided to me throughout this project work.

Last but not least I would like to thanks all Library staff & computer Lab staff of my institute for their help & Support.

REGARDS-

Sangeeta anand (BBA 1st shift)

CERTIFICATE
This is to certify that this is a bonafide record of the project work done by Mr./Ms. SANGEETA ANAND Enrollment no. 00814001710 in partial fulfillment of BBA Programme. This report or similar report on the topic has not been submitted for any other examination and does not form part of any other course undergone by the candidate.

SIGNATURE OF THE CANDIDATE PLACE: DATE:

SIGNATURE OF THE PROJECT GUIDE Name : Designation: Address:

STUDENTS UNDERTAKING

The project is submitted to Jagan Institute of Management

Studies, New Delhi, as a part of final semester project for Bachelor of Business Administration Programme.

Project guides:

(By student name)

Faculty

Table of contents

SERIAL NO. Chapter 1

CONTENTS
Introduction of the company and brand Company- Tata Motors Brand- Tata Nano

PAGE NO.

1-9

Chapter 2

Competitors of the brand Renault

10 - 11

Chapter 3

Segmentation Demographic Psychographic Behavioral Geographic 12 - 15

Chapter 4 Chapter 5

Targeting

16 18

Positioning Tagline Punchline Online advertisement Television advertisement 19- 21

Chapter 6

Conclusions and Recommendations

22 - 23

Bibliography

24

Executive summary
Tata Nano is the cheapest car in the world. It is sold in home country India around Rs 1 lakh i.e approximately USD 2000. It is manufactured by Tata Motor Limited, the largest automobile company in India. Its Chairman, Mr Ratan Tata envisions that Tata Nano to becomea Peoples carwhich is affordable by almost everybody. Tata Nano was first launched in India on 1stApril 2009 and expected to be in Indian market by July 2009. Since launching, it has created a huge buzz all over India. Within the first two days of lunching, it has received 5500booking. The figures keep increasing every day since the launching. What makes Tata Nano so cheap? Basically, by making things smaller, lighter, do away withsuperficial parts and change the materials wherever possible without compromising the safetyand environmental compliance. It is said that Tata Nano has better millage than Toyota Prius and same gas emission as a scooter. There are three types of Tata Nano car available i.e. Tata Nano, Tata Nano CX and Tata NanoLX. The segmentation, targeting and positioning of tata nano has been done on the basis of the standing and positioning and sales of the number of tata nano cars in india. The company is able to acquire a good position by its advertisment and loe prices wich caters to the need of the lower middle class family.

Chapter -1

Introduction of the company and brand

INTRODUCTION
COMPANY TATA MOTORS

Tata Motors Limited is Indias largest automobile company, with consolidated revenues of Rs.1,23,133 crores (USD 27 billion) in 2010-11. 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 third largest bus manufacturer.

The Company's over 25,000 employees are guided by the vision to be "best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics."

Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The Company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) 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's dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India.

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. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South

Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in bodybuilding for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the Company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008.

Tata Motors is also expanding its international footprint, established through exports since 1961. The Company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa.

Tata Motors is focussed on environment-friendly technologies in emissions and alternative fuels. It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment-

friendly technologies in manufacturing processes, significantly enhancing resource conservation.

Through its subsidiaries, the Company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations.

Tata Motors is committed to improving the quality of life of communities by working on four thrust areas employability, education, health and environment. The activities touch the lives of more than a million citizens. The Company's support on education and employability is focussed on youth and women. They range from schools to technical education institutes to actual facilitation of income generation. In health, our intervention is in both preventive and curative healthcare. The goal of environment protection is achieved through tree plantation, conserving water and creating new water bodies and, last but not the least, by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care.

With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

The TATA company was established in 1968, Jamsetji Tata is the founderer of the company. Ratan Tata is the present chairman of the company. The company has been developed by five generations of the TATA family. The company is one of the most sucessfull companies in India. It was the first company to establish TCS soft ware set up in India. Besides India it has delivery centers in Uk,US, hungary,china etc also. The indias first indigenously developed c a r w a s p r o d u c e d b y t h e Ta t a s i n 1 9 9 8 t h e I n d i c a .

T a t a Communications are the major part of the Tata groups. There are about 114 companies and business organisations under the different sectors out of which 27 have been publicly listed. The company has also gained significant international recognition. The company has business t r a n s a c t i o n s a n d o p e r a t i o n s i n a b o u t 8 5 c o u n t r i e s a l l o v e r t h e wo r l d . I t h a s g a i n e d ma n y credentials recently for its business success. They are not only known for their sucessfull business but they also actively participate in contributing to the development of the society. They provide funds for non profit organisations, research activites, charity trusts etc. About4% of the total revenue of the company is contributed towards the society and charity aspects

BRAND TATA NANO

In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at Rs.100,000 (excluding VAT and transportation cost). Designed with a family in mind, it has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Its monovolume design will set a new benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India today. The lean design strategy has helped minimise weight, which helps maximise performance per unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprints.

At its launch the Nano was available in India in three trim levels: The Tata Nano Std priced at 142,000 (US$2,879.8) with a choice of three exterior colors, single-color seats, and a fold-down rear seat

The Tata Nano CX at 171,000 (US$3,467.9) with five color options, airconditioning, two-tone seats, a parcel shelf, assisted brakes and fold-down rear seat with nap rest

The Tata Nano LX at 195,000 (US$3,954.6) with all of the features of the Cx plus fabric seats, central locking, front power windows, body-colored bumpers, fog lamps, a trip meter, a cup holder, mobile phone charging capabilities and a rear spoiler

The reputation the Tata company carries, its income, revenue generated and the loyalty won from its customers and its market share contributes towards the brand value. It has been 140years that the TATA company has been established in India. The revenew of the company was around $70.8 billion . The company is recently given 51stposition among the top 100andIts brand was valued at $9.92 billion by an international consultancy firm Brand finance. It stood in 13 th position among the 25 th most innovative companies assessed by the businesss week magazine. Th e TAT A M o t o r s h o l d s 3 3 .2 % ma r k e t s h a r e o f a u t o mo b i l e s i n 2 0 0 7 . Ac c o r d i n g t o t h e OI C A r e p o r t i n 2 0 0 7 i t h a s 7 0 % ma r k e t s h a r e i n d o me s t i c c om me r t a l s e g me n t a r e a a n d 0 .8 1 % o f t h e wo r l d s ma r k e t . Th o u g h t h e c o mp a n y h a s i t s b a s i c b u s i n e s s i s i n I n d i a t h e i r business is extended worldwide significantly. The company has about 357,000 international employees. The company is

known for its ethics and values. There are seven major areas to wh i c h t h e c o mp a n i e s b u s i n e s s i s e x t e n d e d . Th e y h a v e o p er a t i o n s i n c o m mu n i c a t i o n s a n d information technology, engineering, materials, they also provide services, chemicals, energy s e c t o r s a r e a l s o c o v e r e d b y t h e c o mp a n y a n d i t a l s o f u n c t i o n s i n c o n s u me r p r o d u c t s . Th e c o mp a n y i s a w a r d e d wi t h t h e 1 1 th p o s i t i o n a mo n g t h e w o r l d s mo s t r e p u t a b l e c o mp a n i e s . annual survey by the Reputation Institute in 2009 which included 500 global organisations. The company is the worlds second largest truck and the fourth largest bus manufacturer The other potential comptetors the company had when it was first lauched was Hindus tan M o t o r s LT D a n d P r e mi e r a u t o mo b i l e l t d . Du e t o t h e i mp o r t r e s t r i c t i on s t h e a u t o mo b i l e s available then were only the ambassador and padmini by these two companies manufacturesd under licence of forien companies in India. Then in 1980s the government in a joint venture w i t h t h e s u ju k i mo t o r s l a u n c h e d t h e M a r u t i 8 0 0 a n d ma r u t i o mn i . Th e c o mp a n i e s w e r e ma i n l y f o c u s i n g o n t h e l u x u r y s e g me n t . I n 1 9 8 3 t h e r e gu l a t i o n s f o r a u t omo b i l e s i n I n d i a have been liberalised which led many foreign companies to enter the passenger car market.T h e i n d i c a w a s l a u n c h e d i n 1 9 9 4 t h e c a r m a r k e t i n I n d i a c o u l d b e s e g m e n t e d a s t h e super luxary, medium / luxary segment and the economic/small car segment. The Indica was a c h a l l e n g i n g p r o du c t wi t h t h e i n t e r i o r o f a n a mb a s s a d o r , s i z e o f t h e z e n a n d c o s t o f ma r u t i 800.T h e c a r w a s l a u n c h e d a n d i t w a s success full and the company kept its brand value by manufacturing low cost automobiles not compromising with the required quality. The NANO was started to develop from 2005. It was targeted to the large group of middleclass people in the country using the two and three wheeled vehicles. The Tata Nano won accolades all over the world the car was compared to the fords model T which about 100 yeas a g o h a s c h a n g e d the definition of the personalised transportation.

Chapter-2

Competitors of the brand

Competitors of the brand

Make: RENAULT Model: YENI... Apprx. Cost: Rs. 1, 30, 000 ( AED 10,000/-) (US $2750)

The cheapest car available soon in India by the collaboration of RENAULT and Mahindra. The car will cost around Rs 1,30,000 which will compete TATA mini car and FIAT 500 . This car will be available soon in market at end of 2007 all these car s are in same segment and the price of these mini cars is really close to each other. These will effect the sale of bikes because these mini cars are much efficient and fuel effective and cost little more then a bike so every one would like to buy car rather than a bike, so these car will change the trend and every one will purchase these mini cars. This would also effect the mid range cars market. These three companies are good at market and there will be very good competition after releasing these car. Information for the car Mahindra - Renault Yeni will be available on every showroom of Mahindra detail of this car. The car looks are futuristic design like swift already in market. Mahindra-Renault also launched the Logan which is running at good pace in market.This segment is very tight there are many cars and big brand available like General Motors Lancer, Ford Fiesta, Swift Optra Magnum and much more. But in mini segment there is growth but yet it will boost sales record when these cars enter in market. These cars are affordable by price and running cost . Everyone wants to buy a car but price of car and running cost shatter their dreams but now dreams will come true for the middle class families. This new year will give you greatest gift of new Yeni car by the collaboration of RENAULT and Mahindra.

Chapter-3

segmentation

Segmentation

1. DEMOGRAPHIC SEGMENATION Segmenation of customers based on demographic factors are :a. Age Segmentation is done on the basis of age of a person. It targets the people of all age groups who are adults. That is >18 b. Income Segmentation is done on the basis of income level of a person. It basically targets the lower income group. The income of the consumer should be > 10,000/month c. Gender Product can be segmented for male and female. It basically targets both the gender groups that is male and female. d. Occupation Student, government service, private service, NGO and any other. e. Family size - It caters to the need of a family of maximum 5 people.

2. PSYCHOGRAPHIC SEGMENTATION - Psychographic Segmentation groups customers according to their life-style and buying psychology. Many businesses offer products based on the attitudes, beliefs and emotions of their target market. The desire for status, enhanced appearance and more money are examples of psychographic variables. They are the factors that influence your customers' purchasing decision. A seller of luxury items would appeal to an individual's desire for status symbols. a. Lifestyle Culture oriented, Sports oriented, Outdoor oriented. b. Personality compulsive, authoritarian, ambitious, gregarious.

3. BEHAVIORAL SEGMENTATION - Markets can be segmented on the basis of buyer behaviour as well. a. Benefit sought Quality, service, economy, speed. b. Usage rate Heavy c. User status- Regular user, First time user.

d. Brand loyality- Strong and absolute. e. Readiness aware, informed, interested, desirous. f. Occasion Regular, specific. g. Attitude Enthusiastic and positive.

4. GEOGRAPHICAL SEGMENTATION- Potential customers are in a local, state, regional or national marketplace segment. a. Region It is being sold in india. And majorly in the rural area. b. City All over india. c. Rural and semi urban area Rual villages with a population over 10,000, semi urban areas, small yowns with population between 20,000 to 50,000

Chapter- 4

targeting

Targeting
Tata motors has a Targeted Market Approach. Tata like any other multinational has targeted the middle income group population, as they are larger in number. In order to sell a product company has to first make public realise there importance. When a consumer chooses to buy a certain product, it should impact the consumer in such a way that he or her relates to it. Secondly the company should not compromise on the safety and qualities of the product and make the consumer satisfaction their priority.

The objective behind the success of gaining popularity among middle-income population is that, companies can launch the innovation at a modified level instead of storing it in R&D. Tata has thus stated that is very effective to sell low cost cars with lower margins ,when the demand for the product is higher in volume.

The Nano advantage is a considerable issue ,as it is being produced by a multinational ,whose products range from a wide range of utilities to chemical composites and communication services. Thus consumers will judge the Nano based on the companys reputation in other markets. Potential customers also know Tata from its socio-economic projects to improve local education and health facilities in the neighborhood of Tatas plants. The Product created by the company is made for the middle class group, the product was planned such that it would provide quality and features better than those which are already present. The reduced cost shoud not compromise on the quality and the safety. The design was planned such that it would provide consumers with better product at the affordable price. The Price of the product was decided to be around $3000 including the taxes and other costs as the dealer margin and transportation costs. The raise in steal price did not effect the price as the plastic was used instead of the steal and even the manufacturing cost to the company as low. The engines used are the simple fuel efficient small engines with the efficiency of 50 miles per gallon. The efficiency is comparably more to other small European cars.

Promotion of the product was not a problem to the company. with its innovative ideas and the low price tag attached the product attracted wide media attention. The social relationships were build with its potential customers and as the

company has wide range of product ranging from steel, chemical, services to the consumer based goods. The quality of the products would be assessed depending the products already available with the company and experience of the customers. The distribution system opted by the company was the open distribution system. The main parts were decided to be manufactured in its firms and the parts are to be transported and assembled in places closer to the customers. The companies distribution is also mainly amied at reaching the large, widely dispersed rural low economy population. The market skimming strategy is followed where it initially places price that would bring large demand but then with the understanding of the response and the trend changes the cost o f t h e p r o d u c t i s s u i t a b l y f i x e d c h a n g i n g i t s c h a r a c t e r i s t i c s a c c o r d i n g t o t h e n e e d s o f t h e consumers

Chapter-5

positioning

POSITIONINg
Tata motors promote their products via Advertising and after sales services. Enough use of one of the most important element of promotion mix, publicity reduces the necessity of other promotional devices for nano. Publicity as One lakh car by mouth to mouth. Auto expo 2008,New Delhi & Geneva Publicity through print & electronic media Singur violation. For other type of promotional activities, cost factor that is 1 lakh price tag is to be keep in mind, TATA is going to launch its nano mobile for indicom user, nano watches, nano T-shirts available in Westside stores. Advertising: - TV &other mass media will be less effective, thus too much money will not be invested in this regard. Mainly word of mouth advertising will get more emphasis. Internet will be a major media for advertising. Online buzz:-Nano has gone beyond the traditional methods of advertising and promotion online. Official Orkut community Members - 6,906. Official Facebook Group Fans - 4,210. Highest View Count on You Tube- 303,006 (it was just under 3,00,000 when I began writing this post) No. of Blog Posts - 61,664TATA have a blog on the official website where they have been discussing quite interesting topics and generally maintaining an active community. In all above promotional strategies it is very clear that tata has some where failed to restrict its focus on the targeted people that is middle class people. Generally midlle class people do not access net to such extent that to age group of above 30, so the vigorous online promotion has nothing to do with middle class segment. Objective for promotion strategies was Nano. This is the cheapest car. After that, our second objective is knowledge and persuasive. the aim to create liking, preference, conviction, and purchase of a Tata Nano car

Promotion Tag line - Have Fun, Pay Less, Get more with Tata Nano

People wanted to purchase nano and get more but they thought they actually get less by paying more because of price competition from alto. Punch line Khushiyon Ki Chaabi

Online Advertisement First step we start before lunching Tata Nano, do the online advertisement. Tata Nano created a Web site www.tatanano.com on March 2009 to better communicate with the customers. In the Web site, was posted the photo categories and videos to provide customers the information and special features of Tata Nano and bring them inside the company. In addition to photos and videos, the web site links to recent news about Tata Nano and space for public feedback. Besides that, Blogs have become an important outlet for word of mouth which are regularly updated online diaries. Blogs is bringing together people with common interests. They vary wide and can influence a vast audience due to many internet users have read Blogs. We can establish the blog network and carefully monitoring to find out what's on people's minds especially the potential customers. This is a cheapest and good way to build up brand awareness.

Television Advertisement Television advertisement is very expensive but this is the most powerful to perform the Tata Nano to the public by demonstrating Tata Nano attributes and persuasively explaining their corresponding consumer benefits. To reduce the cost they have decided to remain away from TV ads but now they have recently started.

Chapter-6

RECOMMENDATIONS AND CONCLUSIONS

RECOMMENDATIONS AND CONCLUSIONS

RECOMMENDATIONS: The Nano has created a niche market and its the worlds cheapest car which could win many r o ya l t i e s a n d p a t e n t s . Th e c o mp a n y c a n e x p a n d i t s p r o d u c t e v e n t o t h e l u x u r y s e g me n t , which would help to better withstand its competitors. the other variabilitys if brought in the nano would help in further penetrating the market. The other variations in the model with diesel engines and other modifications could further increase the market share and the model could be further modified to fit for the hilly areas and to reduce the traffic conjesions. CONCLUSION: TATA NANO , carrying the cheapest brand label of over a 150,000 rupees cost is burley in INDIA is to beat the local markets as it as it has created a MONOPOLY of Ultra small sized cars in the market. Some of the potential consumers might be the motorcycle users of Pakistan and India which are very large in number , proving to improve their living standards by providing them a cheap automobile while compromising on costs and relative comfort and luxury features. It has the capability to grab a huge amount of customers in the lower middle and the Middle class of most of the South Asian countries , i.e Pakistan. However due to any reasons if the price of the car rises up by another 50000 or so , then TATA would be vulnerable to the local small manufacturing car competition and might lose its sales upto a certain level. With respect to the PAKISTANI MARKET , if the import and excise duties a l o n g wi t h o t h e r G o v e r n me n t t a x e s a r e s u mme d u p a n d t h e d i f f e r e n c e b e t w e e n t h e ma jo r competitors is decreased , then TATA will have to pull out its hands from the Pakistani market a n d mo v e e l s e wh e r e t o b o o s t i t s s a l e s a n d pr o mo t e t h e C a r in a r e l a t i v e l y C o n s u me r d r i v e n Market, i.e India itself and other foreign countries. If the price of Nano increases by around Rs. 50,000, considering the overall features and price ,the consumer could get indifferent between Tata Nano and other small cars with more facilities thus reducing Nanos sales.

Bibliography

WEBSITES :-

www.tatanano.com www.tatamotors.com www.scribd.com www.google.com