CHAPTER-I

INTRODUCTION

1

TATA GROUP

[INTRODUCTION]

Tata Group

Type Private

Industry Conglomerate

Founded 1868

Founder(s) Jamsetji Tata

HeadquartersBombay,house

Mumbai, India

Area served Worldwide

Key peopleRatanTata

(Chairman)

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Products

Steel

Automobiles

Telecommunications

Software

Hotels

Consumer goods

Revenue 319,534 crore (US$69.34 billion)

Profit 8,240 crore (US$1.79 billion)

Total assets US$ 52.8 billion (2009-10)

Employees 396,517 (2009-10)

Subsidiaries

TataSteel

TataSteelEurope

TataMotors

TataConsultancyServices

TataTechnologies

TataTea

TitanIndustries

TataPower

TataCommunications

TataTeleservices

TataAutoCompSystemsLimited

Taj Hotels

Website Tata.com

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Tata Group

Companies

India-based

CMC · Tata BP Solar · Tata Coffee · Tata Chemicals ·

Tata Consultancy Services · Tata Elxsi · Tata Interactive

Systems · Tata Motors · Tata Steel · Tata Power · Tata

Tea · Tata Communications · Tata Technologies

Limited · Tata Teleservices · Titan Industries · Tata

Voltas · The Indian Hotels Company · Trent

(Westside) · Cromā

Other

Brunner Mond · Jaguar Land Rover (Jaguar Cars · Land

Rover) · Tata Daewoo Commercial Vehicle · Tata Steel

Europe · Tetley · VSNL International Canada

Brands

Ginger · Good Earth Teas · Tanishq · Taj Hotels · I-shakti · Tata

Salt · Tata Sky · Tata Indicom · Tata DoCoMo · Titan · Westside ·

Voltas · Virgin Mobile India

Notable

People

Jamsetji Tata · Ratanji Dadabhoy · Dorabji Tata · Nowroji

Saklatwala · J. R. D. Tata · Ratan Tata · Pallonji Mistry

Bombay House is the head office of Tata Group

The Tata Group is an Indian multinational conglomerate company headquartered in the

Bombay House in Mumbai, India. In terms of market capitalization and revenues, Tata

Group is the largest private corporate group in India. It has interests in chemicals, steel,

automobiles, information technology, communication, power, beverages, and hospitality.

The Tata Group has operations in more than 80 countries across six continents and its

companies export products and services to 80 nations. The Tata Group comprises 114

companies and subsidiaries in eight business sectors, 27 of which are publicly listed.

65.8% of the ownership of Tata Group is held in charitable trusts.

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Companies which form a major part of the group include Tata Steel (including Tata Steel

Europe), Tata Motors (including Jaguar and Land Rover), Tata Consultancy Services,

Tata Technologies, Tata Tea (including Tetley), Tata Chemicals, Titan Industries, Tata

Power, Tata Communications, Tata Teleservices and the Taj Hotels.

The group takes the name of its founder, Jamsedji Tata, a member of whose family has

almost invariably been the chairman of the group. The chairman of the Tata group is

Ratan Tata, who took over from J. R. D. Tata in 1991 and is one of the major

international business figures in the age of globality. The company is currently in its fifth

generation of family stewardship. The 2009 annual survey by the Reputation Institute

ranked Tata Group as the 11th most reputable company in the world. The survey included

600 global companies.

On 9 February 2011 a major fire broke out in the Bombay House, the Tata Group's

headquarters, causing three deaths and one injury, and reportedly gutting the building.

HISTORY

The beginnings of the Tata Group can be traced back to 1868, when Jamsetji Nusserwanji

Tata established a trading company dealing in cotton in Bombay (now Mumbai), British

India. This was followed by the installation of Empress Mills in Nagpur in 1877.

Taj Mahal Hotel in Bombay (now Mumbai) was opened for business in 1903. Sir Dorab

Tata, the eldest son of Jamsetji became the chairman of the group after his fathers death

in 1904. Under him, the group ventured into steel production (1905) and hydroelectric

power generation(1910). After the death of Dorab Tata in 1934, Nowroji Saklatwala

headed the group till 1938. He was succeeded by Jehangir Ratanji Dadabhoy Tata. The

group expanded significantly under him with the establishment of Tata Chemicals (1939),

Tata Motors and Tata Industries (both 1945), Voltas (1954), Tata Tea (1962), Tata

Consultancy Services (1968) and Titan Industries (1984). Ratan Tata, the incumbent

chairman of the group succeeded JRD Tata in 1991.

RATAN NAVAL TATA

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BornDecember28,1937(age 73)

Bombay, Bombay Presidency, British India

Residence Colaba,Mumbai, India

Nationality Indian

Ethnicity Parsi

Alma materCornellUniversity

Harvard University

Occupation Chairman of Tata Group

Awards

PadmaBhushan(2000)

PadmaVibhushan(2008)

Order of the British Empire (2009)

Ratan Naval Tata is the present Chairman of Tata Sons and therefore, Tata Group. He is

also the chairman of major Tata companies such as Tata Steel, Tata Motors, Tata Power,

Tata Consultancy Services, Tata Tea, Tata Chemicals, The Indian Hotels Company and

Tata Teleservices

EARLY LIFE AND EDUCATION

Ratan Tata born to Naval Tata and Soonoo Commisariat in the Tata family, a prominent

family belonging to the Parsi community. Ratan is the great-grandson of Tata group

founder Jamsedji Tata. After his parents separated in 1944, he was brought up by his

grandmother Lady Navajbai and did his schooling in Mumbai from Campion School.

Later, he enrolled in Cornell University, where he earned a B.S in architecture with

structural engineering in 1962, and has also completed the Advanced Management

Program at Harvard Business School.

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When he returned to India in 1962 after turning down a job with IBM on the advice of

JRD, he was sent to Jamshedpur to work on the shop floor at Tata Steel with other blue-

collar employees, shovelling limestone and handling the blast furnace. In 1971, he was

appointed the Director of National Radio and Electronics (Nelco), which was in dire

straits when he came on board: with losses of 40% and barely 2% share of the consumer

electronics market. However, just when he turned it around (from 2% to 25% market

share), the Emergency was declared. A weak economy and labour issues compounded the

problem and Nelco was quickly near collapse again.

For his next assignment, in 1977 he was asked to turn around the sick Empress Mills,

which he did. However, he was refused a Rs 50 lakh investment required to make the

textile unit competitive. Empress Mills floundered and was finally closed in 1986.In

1981, JRD Tata stepped down as Tata Industries chairman, naming Ratan as his

successor. He was heavily criticized for lacking experience in running a company of the

scale of Tata Industries.

In 1991, he was appointed group chairman of the Tata group. As group chairman, he has

been responsible for converting "the corporate commonwealth" of different Tata-

affiliated companies into a cohesive company. He has been responsible for the

acquisition of Tetley, Jaguar Land Rover and Corus, which have turned Tata from a

largely India-centric company into a global business, with 65% revenues coming from

abroad. He also pushed the development of Indica and the Nano. He is widely credited

for the success of the Tata Group of companies, especially after the liberalization of

controls after the 1990s.

RECOGNITION AND HONORARY APPOINTMENTS

Ratan Tata serves in senior capacities in various organisations in India and he is a

member of the Prime Minister's Council on Trade and Industry. Tata is on the board of

governors of the East-West Center, the advisory board of RAND's Center for Asia Pacific

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Policy and serves on the program board of the Bill & Melinda Gates Foundation's India

AIDS initiative. Ratan Tata's foreign affiliations include membership of the international

advisory boards of the Mitsubishi Corporation, the American International Group, JP

Morgan Chase and Booz Allen Hamilton. He is also a member of the board of trustees of

the RAND Corporation, University of Southern California and of his alma mater, Cornell

University. He also serves as a board member on the Republic of South Africa's

International Investment Council and is a member of the Asia-Pacific advisory committee

for the New York Stock Exchange. In 2010, he joined BMB Group as an advisory board

member.

He has also been appointed to the following honorary distinctions:

Honorary economic advisor to Hangzhou city in the Zhejiang province of China.

FIRST Award for Responsible Capitalism. 26th Robert S. Hatfield Fellow in

Economic Education, awarded by Cornell University

recipient of the NASSCOM Global Leadership Awards (2008)

Carnegie Medal of Philanthropy (2007), on behalf of the Tata family.

honorary citizenship of Singapore.

honorary doctorate in business administration by the Ohio State University,

honorary doctorate in technology by the Asian Institute of Technology, Bangkok,

honorary doctorate in science by the University of Warwick, honorary fellowship

by the London School of Economics., and honorary Doctor of Law from the

University of Cambridge.

honored as 'Businessman of the Decade' by The Federation of Indo-Israeli

Chambers of Commerce (2010) .Legend in Leadership award from Yale (2010)

ENGINEERING

The Tata Nano, world's cheapest car

TAL Manufacturing Solutions exports titanium-composite floor beams that are

installed in the Boeing 787 aircraft.

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Tata AutoComp Systems Limited (TACO) and its subsidiaries, auto-component

manufacturing

Tata Motors (formerly Tata Engineering and Locomotives Company Ltd

(TELCO)), manufacturer of commercial vehicles (largest in India) and passenger

cars

Jaguar and Land Rover

Tata Projects

Tata Consulting Engineers Limited

Telco Construction Equipment Company

TRF Bulk Material Handling Equipment and Systems, and Port and Yard

Equipments.

Voltas , consumer electronics company

Voltas Global Engineering Centre

ENERGY

Tata Power is one of the largest private sector power companies. It supplies power

to Mumbai, the commercial capital of India and is the retailer of electricity in the

northern suburbs of New Delhi.

Tata BP Solar , a joint venture between Tata Power and BP Solar

CHEMICALS

Rallis India

Tata Pigments

Tata Chemicals , headquartered in Mumbai, India, Tata Chemicals has the largest

single soda ash production capacity plant in India. Since 2006 Tata Chemicals has

owned Brunner Mond, a United Kingdom-based chemical company with

operations in Kenya and the Netherlands.

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Advinus Therapeutics , headquartered in Bangalore, Indian, a Contract research

organization focused on drug discovery and development for Pharmaceutical,

Agro and Biotech industries.

SERVICES

The Indian Hotels Company

Tata Housing Development Company Ltd. (THDC)

TATA AIG General Insurance

TATA AIG Life Insurance

Tata Advanced Systems Limited

Tata Asset Management

Tata Financial Services

Tata Capital

Tata Investment Corporation

Tata Quality Management Services

Tata Share Registry

Tata Strategic Management Group (TSMG) is one of the largest consulting firms

in South Asia.

Tata Services

Tata Consulting Engineers Limited

Tata Realty and Infrastructure Limited

CONSUMER PRODUCTS

Tata Salt , i-Shakti Salt, Tata Salt Lite

Tata Swach water purifier

Eight O'Clock Coffee

Tata Ceramics

Infiniti Retail

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Tata Tea Limited is the world's second largest manufacturer of packaged tea and

tea products. It also owns the Tetley brand of tea sold primarily in Europe.

Titan Industries manufacturers of Titan watches

Trent (Westside)

Tata Sky

Tata International Ltd - Leather Products Division

Tanishq jewellery

Star Bazaar

INFORMATION SYSTEMS AND COMMUNICATIONS

Computational Research Laboratories

INCAT

Nelco

Nelito Systems

Tata Business Support Services (formerly Serwizsol)

Tata Consultancy Services Ltd. (TCS) is Asia's largest software company with

2008-09 revenues being over US$ 6 bn.

Tata Elxsi is another software and industrial design company of the Tata stable.

Based in Bangalore and Trivandrum.

Tata Interactive Systems

Tata Technologies Limited

Tata Teleservices

Tata Communications , formerly VSNL, the Indian telecom giant, was acquired in

2002. Tata-owned VSNL acquired Teleglobe in 2005.

CMC Limited

TATANET , Managed connectivity and VSAT service provider

THE TATA LOGO

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The Tata logo was designed by the Wolff Olins consultancy. The logo is meant to signify

fluidity; it may also be seen as a fountain of knowledge; maybe a tree of trust under

which people can take refuge.

PHILANTHROPY AND NATION BUILDING

The Tata Group has helped establish and finance numerous quality research, educational

and cultural institutes in India. The Tata Group was awarded the Carnegie Medal of

Philanthropy in 2007 in recognition of the group's long history of philanthropic activities.

Some of the institutes established by the Tata Group are:

Tata Institute of Fundamental Research

Tata Institute of Social Sciences

Indian Institute of Science

National Centre for Performing Arts

Tata Management Training Centre

Tata Memorial Hospital

Tata Football Academy

Tata cricket Academy

Tata Trusts , a group of philanthropic organizations run by the head of the business

conglomerate Tata Son

The JRD Tata Ecotechnology Centre

The Energy and Resources Institute (earlier known as Tata Energy and Research

Institute) - which is an NPO completely committed to the cause of research in the

field of renewable energy.

The Tata Group has donated a ₨ 220 crore ($50 million) to the prestigious Harvard

Business School (HBS) to build an academic and a residential building on the institute’s

campus in Boston, Massachusetts. The new building will be called the Tata Hall and used

for the institute’s executive education programmes. The amount is the largest from an

international donor in Harvard’s 102-year-old existence.

A comprehensive list is available on the company website.

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TATA ACQUISITIONS AND TARGETS

February 2000 - Tetley Tea Company, $407 million

March 2004 - Daewoo Commercial Vehicle Company, $102 million

August 2004 - NatSteel's Steel business, $292 million

November 2004 - Tyco Global Network, $130 million

July 2005 - Teleglobe International Holdings, $239 million

October 2005 - Good Earth Corporation

December 2005 - Millennium Steel, Thailand, $167 million

December 2005 - Brunner Mond Chemicals Limited, $120 million

June 2006 - Eight O'Clock Coffee, $220 million

November 2006 - Ritz Carlton Boston, $170 million

Jan 2007 - Corus Group, $12 billion

March 2007 - PT Kaltim Prima Coal (KPC) (Bumi Resources), $1.1 billion

April 2007 - Campton Place Hotel, San Francisco, $60 million

February 2008 - General Chemical Industrial Products, $1 billion

March 2008 - Jaguar Cars and Land Rover, $2.3 billion

March 2008 - Serviplem SA, Spain

April 2008 - Comoplesa Lebrero SA, Spain

May 2008 - Piaggio Aero Industries S.p.A., Italy

June 2008 - China Enterprise Communications, China

June 2008 - Neotel, South Africa.

October 2008- Miljo Grenland / Innovasjon, Norway

Imacid chemical company, Morocco

TARGETS

Close Brothers Group , $2.9 billion

Orient-Express Hotels , $2.5 billion

January 2008 - T-Systems International (IT division of Deutsche Telekom)

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REVENUE

Tata gets more than 2/3rd of its revenue from outside India.

TATA NANO

TATA NANO

Manufacturer Tata Motors

Also called one-lakh car

Production 2008–present

Assembly

Pantnagar, Uttarkhand, India

Charodi, Gujarat, India (since June

2010)

Class City car

Body style(s) 4-door

Layout RR layout

Engine(s)

2 cylinder SOHC petrol Bosch multi-

point fuel injection (single injector) all

aluminium 624 cc (38 cu   in )

Transmission(s)4 speed synchromesh with overdrive in

4th

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Wheelbase 2,230 mm (87.8 in)

Length 3,099 mm (122.0 in)

Width 1,495 mm (58.9 in)

Height 1,652 mm (65.0 in)

Kerb weight 600 kg (1,300 lb)–635 kg (1,400 lb)

DesignerGirish Wagh, Justin Norek of Trilix,

Pierre Castinel

The Tata Nano is an inexpensive, rear-engined, four-passenger city car built by the

Indian company Tata Motors and is aimed primarily at the Indian domestic market.

Tata Motors began selling its "one-lakh car" in March, 2009. The cheapest car in the

world today, though the price continues to rise due to increasing material costs, it is an

exemplary example of Gandhian engineering, a concept involving deep frugality and a

willingness to challenge conventional wisdom.

In 2008 the Financial Times reported: "if ever there were a symbol of India’s ambitions

to become a modern nation, it would surely be the Nano, the tiny car with the even tinier

price-tag. A triumph of homegrown engineering, the $2,200 (€1,490, £1,186) Nano

encapsulates the dream of millions of Indians groping for a shot at urban

prosperity.Homegrown engineering" is a relative term here as much of the systems and

parts used in the Nano may not have been developed or produced in India.

The nickname, "one-lakh car" is due to the Nano's low price point, near 100,000 (one

lakh rupees).

BENEFITS OF NANO

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The car is expected to boost the Indian Economy.

Create entrepreneurial-opportunities across India.

Expand the Indian car market by 65%.

CRITICISM/PROBLEMS OF NANO

Mass motorization and climate change: It would clog the roads, the atmosphere and

ultimately the lungs of little ones

Would seriously effect used car market: Middle class people would prefer buying NANO

intsead of a used car.

CONTROVERSY OVER NANO

Singur Controversy

Singur car factory land dispute arose as Tata's planned manufacturing unit for the car in,

Singur, where the state government of West Bengal had allocated 997 acres (4.03 km2) to

Tata Motors.The construction of the car factory on that tract of land began in January

2007 on fertile agricultural land and the expropriation and eviction of approximately

15,000 peasants and agricultural workers. The affected farmers have fears that they will

receive inadequate or no compensation and therefore lose their livelihoods.

On 2 October 2008, Ratan Tata officially announced that Tata Motors is pulling the Tata

Nano project out of Singur and "evaluating options from Maharasthra and Gujarat," as

well as Karnataka to relocate the plant and machinery.

HISTORY

Seeing an opportunity in the great number of Indian families with two-wheeled rather

than four-wheeled vehicles, Tata Motors began development of an affordable car in 2003.

The purchase price of this no frills auto was brought down by dispensing with most

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nonessential features, reducing the amount of steel used in its construction, and relying

on low-cost Indian labor. The introduction of the Nano received much media attention

due to its low price. While the car has sold over 200K units, disappointing November,

2010, sales figures have made some rethink current opinion that selling no frills products

to the poor will be a winning strategy in the future. The Nano's development was

foreshadowed by the 2005 success of the affordable, 4-wheeled Tata Ace truck.

EXPECTATIONS

Many have had great expectations for this small car, some perhaps going a bit too far.

One study, by Indian rating agency CRISIL, thought the Nano would expand the nation's

car market by 65%.

SINGUR FACTORY PULLOUT

Tata Motors announced in 2006 that the Nano would be manufactured in Singur, West

Bengal, helped in part by a forced acquisition and reuse of farmland by the West Bengal

state government to entice Tata to build there. Local farmers soon began protesting the

forced acquisition of their land for the new factory. As the protests continued through

2007 and 2008, Tata first delayed the Nano launch and later decided to build the car at a

different location in Gujarat, instead.

DESIGN

The car's exterior was designed at Italy's Institute of Development in Automotive

Engineering.

COST CUTTING FEATURES

The Nano's design implements many cost-reducing innovations.

The Nano's trunk is only accessible from inside the car, as the rear hatch does not

open.

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One windscreen wiper instead of the usual pair

No power steering, unnecessary due to its light weight

Three lug nuts on the wheels instead of the usual four

Only one wing mirror

No radio or CD player

No airbags

623cc engine has only 2 cylinders

PRICE

Announcing the vehicle as the least expensive production car in the world, Tata aimed for

a starting price of one lakh, or 100,000, rupees. This was approximately US$2000 at the

time. As of December, 2010, the cheapest Nano costs around US$2900.

Rapidly rising material prices (up 13% to 23% over the car’s development time) caused it

to cost somewhat more than 1 lakh (US$2,170).

In late October 2010, Reuters reported that prices will be raised by an average of 9,000

rupees (US$202) from November because of rising material costs.

MODEL VERSIONS

Tata Nano Europa

At its launch the Nano was available in three trim levels:

the basic Std priced at 142,000 (US$3,081.4) has no extras

the deluxe Cx at 171,000 (US$3,710.7) has air conditioning

the luxury Lx at 195,000 (US$4,231.5) has air conditioning and power windows

EUROPA

This export version of the Nano was first shown at the 2009 Geneva Motor Show but has

yet to go on sale. Heavily upgraded to meet EU safety and emission standards, the car

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will have a number of improvements over the standard Nano, including an extended

wheelbase, a new 3-cylinder engine, power steering, an anti-lock braking system (ABS)

and an improved interior and exterior. The Nano Europa will be more expensive, heavier,

and less fuel efficient than the standard Nano with prices said to be around US$6000.

TECHNICAL SPECIFICATIONS

The Nano is a 35 PS (26 kW; 35 hp) car with a two-cylinder 624 cc rear engine.

The car complies with Indian emission standards and can also meet European emission

standards as well.

Engine: 2 cylinder petrolwith

Bosch multi-point fuel

injection (single injector)

all

aluminium33 horsepower

(25 kW) 624 cc (38 cu   in )

Value Motronic engine

management platform

from Bosch

2 valves per cylinder

overhead camshaft

Compression ratio: 9.5:1

bore × stroke: 73.5 mm

(2.9 in) × 73.5 mm (2.9

in)

Power: 35 PS (26 kW; 35

hp) @ 5250 rpm

Torque: 48 N·m (35

ft·lbf) @ 3000 +/-500

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rpm

Layout and

Transmission

Rear wheel drive

4-speed manual

transmission

Steering mechanical rack and

pinion w/o servo

Turning radius: 4 metres

Performance Acceleration: 0-60 km/h

(37 mph): 8 seconds

Maximum speed:

105 km/h (65 mph)

Fuel efficiency (overall):

23.6 kilometres per litre

(4.24 litres per 100

kilometres (66.6 mpg-imp;

55.5 mpg-US))

Body and

dimensions

Seat belt: 4

Trunk capacity: 150 L

(5.3 cu ft)

Suspension,

Tires &

Brakes

Front brake: 180 mm

drum

Rear brake: 180 mm

drum

Front track: 1,325 mm

(52.2 in)

Rear

track: 1,315 mm (51.8 in)

Ground clearance:

180 mm (7.1 in)

Front suspension:

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McPherson strut with

lower A arm

Rear suspension:

Independent coil spring

12-inch wheels

ALTERNATIVE-ENERGY ENGINES

While the Nano is a driven by a gasoline-powered engine, several more-radical

powerplants have been proposed but not put into production.

COMPRESSED-AIR ENGINE

Tata Motors signed an agreement in 2007 with a French firm, Motor Development

International, to produce a compressed air car Nano. While the vehicle was supposed to

be able to travel approximately 200 kilometres (120 mi) on US$3 of electricity to

compress the air, Tata's Vice President of Engineering Systems confirmed in late 2009

that vehicle range continues to be a problem. Unless there is some form of insulation that

can keep the stored air from cooling, compressed air cars waste much of the charging

power as heat and then form ice that tends to clog the air engine when driving.

DIESEL

A website has speculated that the Nano might be made available with a diesel engine.

Tata motors have not confirmed this but have stated, "As of now there is no Diesel

variant of the Nano. The Nano is only available in a Petrol version.

ELECTRIC VEHICLE

Tata has discussed the possibility of producing an electric version, and while it

showcased an electric vehicle Nano at the 2010 Geneva Motor Show, no such car is

currently on the market.

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If an EV Nano is sold it's expected to be the "world's cheapest electric car", use lithium-

ion batteries, and have a range of 80 miles (130 km). A Norwegian electric car specialist,

Miljøbil Grenland AS, has been named as a supposed partner in the project.

SAFETY CONCERN

A small number of fire incidents involving the Nano were reported. This led Tata to add

safety devices to the vehicle, although no recall was initiated and according to Tata, the

car is safe.

EFFECTS

The introduction of a cheap, mass market auto such as the Nano is bound to have some

unforeseen effects.

SAFER TRAVEL

Nano driving is safer than that of the currently used two-wheelers especially during

monsoon, when heavy rains can make traveling difficult on two-wheelers due to wet

roads.

POLLUTION INCREASE

As the Nano was designed for a population currently using eco-friendly bicycles and

motorcycles, environmentalists are concerned by the increase in pollution that would

follow a mass motorization in developing countries such as India. The Nano has far lower

emissions compared with developed country autos, however.

INDIAN USED CAR MARKET

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The Nano is thought to have affected the used car market in India, as some Indians may

opt to buy a Nano rather than a used vehicle. The new-car market is also being affected.

Sales of new Maruti 800s, the second-cheapest car in India, dropped by 20% and used

models by 30% immediately prior to the Nano's introduction.

AWARDS

2010 Business Standard Motoring Indian car of the year

2010 Bloomberg UTV-Autocar car of the year

2010 Edison Awards, first place in the transportation category

2010 Good Design Awards, in the category of transportation

IN THE MEDIA

"Small Wonder: The Making of Nano", is a book on creation of Tata Nano.

CUSTOMER PERCEPTION ABOUT TATA NANO

OBJECTIVE & METHODOLOGY

Try to ascertain whether there has been a change of customer perception about

tata nano since it was launched.

1 Identifying the factors which led to this change

2 SWOT Analysis

3 Competitor Analysis

4 Online Survey

5 Customer Feedback

6 TATA Motors officials feedback

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7 General public feeback

TATA NANO

unveiled on 10th January2008

1 Lakh Peoples Car Cheapest car in the world

Car of the year 2 years back to back

Booked several times over huge Popularity

SWOT

Affordable, Fuel efficient, collision safety requirements

S t r e n g t h Meets emission standards, Huge prospective customer

base Stylish, TATA motors has fully developed SSS, Eco

friendly

Short distance car , Less power, Noisy,

Weakness Not suited for high speed driving

No modern facilities

Tapping the publicity , Eating into second

opportunity hand car market Making Nano hybrid , Nano

electric, Ramping production Giving more

facilities at the same cost

Competition , Perception as a cheap, unsafe product

T h r e a t Increase in the road congestion ,

Loss in sales due to low production output

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INTERPRETATION & LEARNING

Huge Potential has clicked in peoples mind, Sense of association, Head turner

Needs to tap the publicity created, Need to address &rectify safety concerns

COMPITETOR ANALISIS

INTRODUCTION & OBJECTIVE

Framework to identify Identifying current

The strength and weakness status vis-a-vis the

Of the competitor offensive comparative SWOT

And defensive strategy analisis analysis of our

To get an insight into competi competitors with TATA

-tor available oppoutunity Nano

and possible threats

Developing the product

profile of the competitor

i.e. identifying key

features comparative to

TATA NanO

IDENTIFIED MAJOR COMPITITOR

MARUTI ALTO:

From the stable of Largest automobile manufacturer of South Asia Maruti

Suzuki India Limited Largest selling car in INDIA since 2006

KEY FEATURES IN COMPARISON WITH TATA NANO

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H IGHS: Better performance (speed),higher engine power, more seating

capacity, larger fuel tank and available modern features like power steering,

disk brakes etc.

LOWS: Higher pricing (about twice to that of Nano), Lower fuel mileage, lack

of amenities like fog lights; tubeless tyres etc

BAJAJ LITE:

Bajaj Indias top most 2/3 wheel manufacturer First mover advantage with Lite

(small segment 4-wheeler) To be built in collaboration with Nissan;launch by

2012

KEY FEATURES

Collaborative product with Nissan –leading automaker in the worldhaving high

technological prowess Expected to have higher fuel efficiency 35

km/l as compared to Nanos 25 km/l

Expected to be slightly lower priced around `1,17000 as compared to Nano ’s `

1,23,000 Will have an transmission intermediate to manual and automatic; slight

edge over Nano’s purely Manual transmission

SECOND HAND CARS:

U sed car market tremendously increasing in INDIA

Leading players Maruti & Honda

Reasons: Easy accessibility and lower interest rates for loans

KEY FEATURES

Lower pricing of around 1,00,000 Association with bigger, established

brands in 4-wheeler industry like Maruti and Honda as compared to a

new entrant like TATA .Obvious higher engine power

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Better performance in terms of speed On the low side, lower fuel mileage

than Nanos 25 km/l

PLANNED CARS:

Eco friendly cars like TARA Tiny and Oreva Superwhich run on electricity;

priced

around ` 1,00,000

CHAPTER-II

REVIEW27

OF

LITERATURE

REVIEW OF LITERATURE

A review of literature is a critical analysis of a segment of a published body of

knowledge. A number of studies had been conducted related to TATA MOTORS.Due to

shortage of time and inability to cover all these past studies, some of these studies have

been considered in this section that has provided a base for this research.

Wells (2010) conducted a case study of the Tata Nano, a low-price car designed

primarily in and for the Indian market, and its implications for the developed industrial

markets. While the Nano is a classic ‘disruptive’ innovation in an Indian context, this

paper argues that the car and its emulators have the potential to undermine the viability of

the European automotive industry whose business is premised on technological

28

sophistication, premium branding and high price. In an era of greater austerity, the ‘value

for money’ segment is the one with global growth potential in emergent markets as well.

The paper concludes that policy makers in Europe will need to decide how to react to the

rather different vision of automobility offered by the Nano.

Thomaas(2010) conducted that Public agencies increasingly perform their functions in

partnership with other public, nonprofit, and private sector actors, prompting growing

research interest in how these collaborations function. As yet, almost no one has thought

it worth asking how collaborative partners perceive each other's performance, although

these perceptions may themselves constitute important measures of agency effectiveness.

Their determinants, in turn, could point to how agency effectiveness might be enhanced.

This article examines these perceptions and their possible determinants for the

partnerships between the state of Georgia's Department of Transportation and the state's

local governments. Drawing from prior research on citizen satisfaction with local

governments, the article proposes a preliminary theory of local government partner

perceptions of state agency performance, including several principal dimensions of those

perceptions—customer, partner, and overseer or principal—and hypotheses on possible

determinants of those perceptions. The relevance of the dimensions and the hypotheses

are then tested using data from two surveys of local government officials in Georgia. A

concluding section offers speculations on the meaning of these findings for thinking

about public service collaborations

Markovits (2010) conducted in 1984, then-Professor (now-Judge) Frank Easterbrook

published an article recommending that U.S. courts use five filters to dismiss antitrust

cases without considering the merits of the plaintiff's or State's claim in any detail.

According to Easterbrook, the courts' use of these filters would serve the public interest

more by preventing them from mistakenly finding lawful conduct illegal than it would

disserve the public interest by enabling some perpetrators of illegal conduct to escape

liability or conviction. Although Easterbrook did not emphasize this fact, if his filters

were as inexpensive to apply as he assumed, their use would also serve the public interest

by reducing the transaction costs generated by antitrust litigation. Easterbrook's proposals

29

belong to a wider set of proposals made and/or adopted by economists, antitrust law

professors, antitrust judges, and antitrust enforcement officials that are designed to serve

the public interest (usually, more specifically, to increase economic efficiency) by

simplifying the application of U.S. antitrust law. This article argues that no member of

any of the eight sets of proposals of this kind that have been made and/or adopted can

bear scrutiny. It argues first that all these proposals must be rejected because they are too

inaccurate to be morally acceptable or legally valid—that is, because they ignore the fact

that the U.S. antitrust laws promulgate cognizable specific-anticompetitive-intent or

decreasing-competition tests of legality (do not authorize the courts to “regulate” the

conduct the statutes cover in the public interest, much less in the way that would be most

economically efficient) and the related fact that the moral-rights bearers for whom the

United States is responsible have a moral and legal right to courts, and juries' doing their

best in individual cases to discover the answer to the legal claim at issue that is correct as

a matter of law. It argues second that, for a variety of reasons, the proposals in question

would not serve the public interest or increase economic efficiency even if such moral-

rights considerations could be ignored because they are too inaccurate and relatively too

transaction-costly to be desirable, moral rights considerations aside.

Rieger (2010) conducted that “Dulles is driving his second Volkswagen already,”

announced the headline of a provincial West German newspaper in April 1957. The

accompanying article recounted how the automaker Volkswagen ( VW) had established

itself as a premier purveyor of export vehicles in the United States. 1 Only a decade after

the end of World War II, the report made clear, the superpower that had recently been the

Third Reich's enemy and that now towered as the Western leader of the Cold War

alliance welcomed the German-made commodity. The article gave no reason for John

Foster Dulles's vehicle purchase, but the fact that none other than the secretary of state

had opted for a small foreign car underlined for West German readers the significance of

VW's good fortune in America. Dulles's “Beetle” made the news thanks to the leading

positions that both the car and its manufacturer secured as symbols of West German

postwar recovery at home and abroad. Viewing the success of their exports as an

important sign of their international rehabilitation, West Germans developed a sensitive

30

radar for American recognition, particularly high-profile consumption of the product that

epitomized the Federal Republic's “economic miracle.”

The Volkswagen Beetle's American journey points to an important aspect of postwar

cultural and commercial relations between the United States and Western Europe that has

received little scholarly attention. While a substantial body of work has examined the

growing transatlantic prominence of American consumer commodities and practices as

well as other cultural products, Western Europe's cultural place in the United States has

only rarely aroused curiosity among historians. America's cultural importance in Western

Europe since 1945 has become convenient shorthand for the importance of the nation's

“soft power.” Both American elite culture—including abstract expressionism—and

popular culture—ranging from rock ‘n’ roll music to Hollywood film—were widely

accepted among Western …

Duysters et.al (2009) conducted that China and India have in recent years been

demonstrating their ability to face up to the challenges of globalization by

internationalizing their operations. In this article we carry out a case study of China's

Haier Group followed by a comparison of its growth and internationalization with those

of India's Tata Group. We examine several aspects of their internationalization, such as

the mode of internationalization and the choice of overseas destinations. The study

further explores the importance of, among others, conglomerate structure, prior

experience, the state, and entrepreneurship in the internationalization of the two groups.

Hoven and Vermaas(2007) conducted that that nano-technology in the form of invisible

tags, sensors, and Radio Frequency Identity Chips (RFIDs) will give rise to privacy

issues that are in two ways different from the traditional privacy issues of the last

decades. One, they will not exclusively revolve around the idea of centralization of

surveillance and concentration of power, as the metaphor of the Panopticon suggests, but

will be about constant observation at decentralized levels. Two, privacy concerns may not

exclusively be about constraining information flows but also about designing of materials

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and nano-artifacts such as chips and tags. We begin by presenting a framework for

structuring the current debates on privacy, and then present our arguments.

Meikle (2000) conducted that this essay explores a topu that recalls Reyner Banham's

celebration of American popular culture and his enthusiastic travels through the United

States From 1931 into the early 1950s, the US market for inexpense postcards was

dominated by the s0-called hnen postcard, which was developed, designed, printed and

marketed by Curt Teuh & Co of Chiacgo Based on retouched black-and-white

photographs and printed in vivid, often exaggerated colours on textured card stock, these

inexpensive postcards represented the landscape and roadside attractions of an optimistic,

even important. American scene—an alternate world not always congruent with the relay

of the US during decades of economic depression and war. To a historian, the

encyclopaedic geographic iconographic of Tech's hnen cards, and of those printed by

competitors, suggests popular middle-class attitudes about nature, wilderness,

technology, mobility and the city during a self-conscious 'machine age'. For a collector,

on the other habd, these cards which are certainly authentic survivors of these time,

evolve postmodem nostalgia for a lost world portrayed through the maccurate

representations of pasteboard images.

Klepper and Kenneth (1997) conducted a buildup in the number of firms, new

industries commonly experience a ‘shakeout’ in which the number of firms declines

sharply. Three theoretical perspectives on how technological change contributes to

industry shakeouts are analyzed. The theories are used to synthesize predictions

concerning technological change and industry evolution. The predictions inform an

analysis of four US industries that experienced sharp shakeouts: automobiles, tires,

televisions and penicillin. Using data on firm participation and innovation from the

commercial inception of the four products through their formative eras, we uncover

regularities in how the products evolved. The regularities suggest that shakeouts are not

triggered by particular technological innovations nor by dominant designs, but by an

evolutionary process in which technological innovation contributes to a mounting

dominance by some early-entering firms.

32

CHAPTER-III

NEED, SCOPE AND

33

OBJECTIVES OF

THE STUDY

NEED , SCOPE AND OBJECTIVES OF THE STUDY

3.1 NEED OF STUDY

The researches that were conducted in past by various professionals were regarding

various products of Tata but not done about the customer perception about Tata nano.

Study relating to other products of Tata is done but not regarding the customer perception

about Tata ano. This gap has been identified and it has let to the present research being

under taken so, the need was felt to cover the area as neglected, thus customer perception

about Tata nano has been study

3.2 SCOPE OF STUDY

34

Scope of the study about the customer perception about Tata nano is limited to Palampur

3.3 OBJECTIVE OF THE STUDY

Objectives are the guiding lights of the study. The present study is undertaken to achieve

following objectives

1 To check the awareness level of customers about Tata nano..

2 To study the perception of customer regarding the inexpensive car

3 To know which features of the Tata nano is liked the most by the customers

4 To know which features of Tata Nano is not liked by the customer.

5 To know about the competitors of Tata nano

CHAPTER IV

35

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. The

Research Methodology includes the various methods and techniques for conducting a

Research. “Marketing Research is the systematic design, collection, analysis and

reporting of data and finding relevant solution to a specific marketing situation or

problem”. D. Slesinger and M.Stephenson in the encylopedia of Social Sciences define

Research as “the manipulation of things, concepts or symbols for the purpose of

36

generalizing to extend, correct or verify knowledge, whether that knowledge aids in

construction of theory or in the practice of an art”.

Research is, thus, an original contribution to the existing stock of knowledge making for

its advancement. The purpose of Research is to discover answers to the Questions

through the application of scientific procedures. Our project has a specified framework

for collecting data in an effective manner. Such framework is called “Research Design”.

The research process followed by us consists of following steps:

Research Design:-

Exploratory Research:-

Descriptive Research:-A type of conclusive research which has as its major

objective the description of something-usually market characteristics or functions.

In other words descriptive research is a research where in researcher has no

control over variable. He just presents the picture which has already studied.

Conclusion Oriented Research:-Research designed to assist the decision maker

in the situation. In other words it is a research when we give our own views about

the research.

Sample Design-Sampling can be defined as the section of some part of an aggregate or

totality on the basis of which judgement or an inference about aggregate or totality is

made. The sampling design helps in decision making in the following areas:-

Universe of the study-The universe comprises of two parts as theoretical

universe and accessible universe

Theoretical universe- It includes all the people throughout the universe.

Accessible universe- It includes people in Palampur region.

Sample frame-Sample frame refers from where the questionnaires are to be

filled. Our sample frame consists people of Palampur .

37

Sample size- Sample size is the number of elements to be included in a study.

Keeping in mind all the constraints 60 respondents were selected.

Sample unit- Sampling unit is the basic unit containing the elements of the

universe to be sampled. The sampling unit of our study is general public.

Sampling Techniques- The sampling techniques used are convience technique

and simple random sampling technique.

Methods of Data Collection- Research work is exploratory in nature. Information has

been collected from both Primary and Secondary data.

Primary sources- Primary data are those, which are collected are fresh and for

the first time, and thus happen to be original in character. Primary data has been

collected by conducting surveys through questionnaire, which include both open-

ended and close-ended questions and personal and telephonic interview.

Secondary sources- Secondary data are those which have already been collected

by someone else which already had been passed through the statistical process.

Secondary data has been collected through magazines, websites, newspapers and

journals.

Tools of Analysis-

To analyse the data obtained with the help of questionnaire, following tools were used.

Likert Scale : These consist of a number of statements which express either a

favourable or unfavourable attitude towards the given object to which the

respondents are asked to react. The respondent responds to in terms of several

degrees of satisfaction or dissatisfaction.

Weighted Average Score: This tool is used to calculate highest and lowest rank.

Tables: This is a tool to present the data in tabular form.

Percentage, Bar Graphs And Pie Charts: These tools were used for analysis of

data.

38

LIMITATIONS OF THE STUDY

Due to constraints of time and resources, the study is likely to suffer from certain

limitations. Some of these are mentioned here under so that the findings of the study may

be understood in a proper perspective.

The limitations of the study are:

The research was carried out in a short period. Therefore the sample size and the

parameters were selected accordingly so as to finish the work within the given

time frame.

The information given by the respondents might be biased some of them might

not be interested to give correct information.

Some of the respondents could not answer the questions due to lack of

knowledge.

Some of the respondents of the survey were unwilling to share information.

CHAPTER-V39

DATA ANALYSIS AND

INTERPRETATION

1. Do you have any vehicle ?

TABLE 5.1

RESPONSE TOTAL NUMBER % OF RESPONSE

YES 47 78.33

NO 13 21.66

TOTAL 60 100

40

FIGURE 5.1

INTERPRETATION

Majority of people in Palampur region have vehicle.

2 If yes, then specify ?

TABLE 5.2

RESPONRES TOTAL NUMBER % OF RESPONSE

TWO WHEELER(1) 34 59.65

FOURWHEELER(2) 23 40.35

ANY OTHER(3) 0 0

TOTAL(4) 57 100

41

FIGURE 5.2

INTERPRETATION

Majority of the people have two wheelers in Palampur region.

3 Are you aware about TATA NANO ?

RESPONSE TOTAL NUMBER % OF RESPONSE

YES 59 98.33

NO 1 1.66

TOTAL 60 100

Table 5.3

42

Figure 5.3

INTERPRETATION

Majority of the people in the Palampur region are aware about TATA NANO

4 Would you like to go for Rs one lakh car ?

Table 5.4

RESPONSE TOTAL NUMBER % OF RESPONSE

YES 28 46.66

NO 32 53.33

TOTAL 60 100

43

Figure 5.4

INTERPRETATION

Majority of people in Palampur region would not like to buy Rs 1 lakh car

5. What do you think of its mileage of 21 km/l?

RESPONSE TOTAL NUMBER % OF RESPONSE

Very good and

reason to buy

16 26.67

Not good enough 14 23.33

Good enough 30 50

TOTAL 60 100

Table 5.5

44

Figure 5.5

INTERPRETATION

Majority of people of Palampur thinks its mileage is good enough

6. What Change would you like to see in TATA NANO ?

RESPONSE TOTAL NUMBER % OF RESPONSE

Regarding Design 24 37.5

Regarding color 3 4.68

Regarding the noise produced

like three-wheeler while

running

37 57.81

TOTAL 64 100

Table 5.6

45

Figure 5.6

INTERPRETATION

Majority of people wants to see change regarding noise produced like three wheeler

while running

7 . Is TATA NANO equal safe to travel as other cars?

RESPONSE TOTAL NUMBER % OF RESPONSE

YES 15 25

NO 45 75

TOTAL 60 100

Table 5.7

Figure 5.7

46

INTERPRETATION

Majority of people thinks that it is not equally safe to travel in TATA NANO as in other

cars.

8. Kindly rank your preference (on the1 to 5 scale) about the parameters of TATA

NANO considered while making purchase where 1 being the most important rank

To calculate the responses given by customers we apply the submitted scrore as

below

47

INTERPRETATION

Safety and comfort are the main areas where the improvement is required in TATA

NANO to make customers satisfied.onthe other hand Brand name and affordability is

mostly liked by people.

9 Would you like to buy second hand car instead of TATA NANO ?

Table 5.9

RESPONSE TOTAL NUMBER % OF RESPONSE

YES 28 46.67

OPTIONS RANK 1 RANK 2 RANK 3 RANK 4 RANK 5 TOTAL

Brand

Name

37

37

10

20

6

18

5

20

2

10

105

Shape and

design

5

5

12

24

23

69

13

52

7

35

185

Safety 2

2

4

8

7

21

15

60

32

160

251

Affordabilit

y

16

16

19

38

9

27

12

48

4

20

149

Comfort 0

0

16

32

13

39

17

68

14

70

209

TOTAL 60 122 174 248 295 899

48

NO 32 53.33

TOTAL 60 100

figur5.9

INTERPRETATION

Majority of people dose not like to buy second hand car instead of TATA NANO

10 Who is main competitor of TATA NANO ?

Table 5.10

RESPONSE TOTAL NUMBER % OF RESPONSE

Maruti 800 34 56.67

Second hand cars 16 26.66

49

Bajaj lite 10 16.67

Planned car 0 0

TOTAL 60 100

Figure 5.10

INTERPRETATION

Majority of people thinks that maruti 800 is the main competitor of TATA NANO

11. Do you think purchase decision of TATA NANO will effect your status?

RESPONSE TOTAL NUMBER % OF RESPONSE

YES 25 41.67

50

NO 35 58.33

TOTAL 60 100

Table 5.11

Figure 5.11

INTERPRETATION

Majority of people thinks that purchase decision of TATA NANO will not effect their

status

51

CHAPTER-VI

FINDINGS OF THE

STUDY

FINDINGS OF THE STUDY

52

Majority of people in Palampur region have vehicle.

Majority of the people have two wheelers in Palampur region

Majority of the people in the Palampur region are aware about TATA NANO.

Majority of people in Palampur region would not like to buy Rs 1 lakh car.

Majority of people of Palampur thinks its mileage is good enough.

Majority of people wants to see change regarding noise produced like three wheeler

while running.

Majority of people thinks that it is not equally safe to travel in TATA NANO as in other

cars.

Safety and comfort are the main areas where the improvement is required in TATA

NANO to make customers satisfied.onthe other hand Brand name and affordability is

mostly liked by people

Majority of people dose not like to buy second hand car instead of TATA NANO.

Majority of people thinks that maruti 800 is the main competitor of TATA NANO.

Majority of people thinks that purchase decision of TATA NANO will not effect their status.

53

CHAPTER – VII

CONCLUSION AND

RECOMMENDATIONS

54

CONCLUSION

Majority of people in Palampur region have vehicle and mostly two wheeler Almost

every person of the Palampur region is aware about TATA NANO and majority of

people thinks its mileage is good enough. They want to see changes in TATA NANO

regarding noise produced like three wheeler while running. Most of the people of

Palampur thinks that it is not safe to travel in TATA NANO as in other cars.

So TATA must work upon the safety feature and the noise produced by car in order to

make it popular car in the segment

RECOMMENDATION

Safety and comfort are the main areas where the improvement is required in TATA

NANO to make customers satisfied.and noise produced like three wheeler is also

controlled.

55

REFERENCES

56

REFRENCES

Petre Well (march 2010) Oxford Journal Volume 3,Issue 3 >Pp 443-457

John Clayton Thomas ( 2010) Oxford Journal Volume 20,Issue 4 >Pp 779-799

Richard S. Markovits (2010) Oxford Journal Volume 6,Issue 1 >Pp51-117

Bernhard Rieger (2010) Oxford Journal Volume 97,Issue 1 >Pp91-115

Geert Duysters,Jojo Jacab (April2009)) Oxford Journal Volume 18,Issue 2 >Pp 325-349

Jeroen van den, Hoven and Pieter E. Vermaas (2007) Oxford Journal Volume 32,Issue

3>Pp 283-297

Jeffery Meikle(2000) Oxford Journal Volume 13,Issue 4 >Pp 267-286

Steven Klepper and Kenneth L.Simon (1997) Oxford Journal Volume 6,Issue 2 >Pp

379-460

57

ANNEXURE

58

Questionnaire

We Rakesh Sharma,Vishali Jasrotia and Rajesh Kumar are conducting a research on the topic “customer perception about TATA NANO ” And we request you to fill the following questionnaire .This will take 3-5 minutes of your time and we promise to keep the information confidential.

Demographic Information

Name ………………….

Age 15-25 26-35 36-45 Above 45

Gender Male Female

Occupation Student serviceman businessman

Place ………………….

2. Do you have any vehicle ?

fff Yes No

3. If yes, then specify ?

fff Two wheeler Four wheeler Any other

4. Are you aware about TATA NANO ?

fff Yes No

4. Would you like to go for Rs one lakh car ?

YES NO

5. What do you think of its mileage of 21 km/l?

59

Very good and reason to buy Not good enough

Good enough

6. What Change would you like to see in TATA NANO ?

Regarding Design Regarding color

Regarding the noise produced like three-wheeler while running

7. Is TATA NANO equal safe to travel as other cars?

YES NO

8. Kindly rank your preference about TATA NANO(on the basis of 1-5 scale) where 1 being the most important rank

Brand Name

Shape and design

Safety

Affordability

Comfort

9. Would you like to buy second hand car instead of TATA NANO ?

Yes No

10. Who is main competitor of TATA NANO ?

Maruti 800 Second hand cars

Bajaj lite planned car

11. Do you think purchase decision of TATA NANO will effect your status?

Yes No

Thanks for your co-operation.

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61

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