VATION”Submitted to: Submitted to: Mr. Shakti Dodiya Mr. Shakti Dodiya Submitted by: Submitted by: Prajapati
Prajapati Vishvani Vishvani (45)(45) Rava Shipa (4!) Rava Shipa (4!) Sa"ena Smruti(4#) Sa"ena Smruti(4#)
About TATA motors About TATA motors
Established in in 1945, 1945, the the company company is is top top 1 1 automobileautomobile manufactur
manufacturer er in in India, India, world’s world’s 44thth
largest truck truck manufacturers manufacturers and and world’world’s s third third largestlargest bus manufacturer
aata ta motors motors has has produceproduced d ! ! sold sold more more than than 4 4 millionmillion cars in India so
cars in India so far.far. It
It has has more more than than "5### "5### employees, employees, 45## 45## engineersengineers and scientists and with
ata launta launched ched &'&'' ' I(%II(%I)'* Ind)'* India’s ia’s largelargestst selling
selling car, which car, which is is India’s first India’s first fully fully indigenousindigenous car.
In "##5, they created new segment mini trucks with In "##5, they created new segment mini trucks with the launch of &'' ')E*.
the launch of &'' ')E*.
In +an "##, '' un-eiled its &eople car* , '' In +an "##, '' un-eiled its &eople car* , '' ('(/ the c
Business Models for TATA NANO
%ream of 0ri $''( '', a car cheap enough for motor cycle buyers.
or this pro2ect, '' adopted
“COLLABARATIVE APPROACH”, which usually belie-es in -ertically integrated approach and company belie-es it could do
NE !"ODUCT DEVE#O!MENT
hree ma2or re3uirements of '' otor’s engineers is
ow cost 6 1,##,###7 Emission (orms
Com$%n& 'ener%ted se(er%l ide%s) su*+ %s,
' scooter with two more back wheels for better stability.
'n auto rickshaw with four wheels8 ' four wheeled rural car8
' four wheeled open car with safety side bar8 ade with openings like auto rikshaw8
'nd so on :ut market wanted a )'$ and not
something people would say &hat’s 2ust a scooter with four wheels or auto;ricksha with four wheels*
BUT .+%t t&$e of $rodu*t/////he car has to be built on a different platform as
compared to the con-entional one.
It must meet all the safety and regulatory re3uirements.
he car has to be designed so that it can be e<ported. he car must be a beacon for the Indian automobile Industry and pro-e the world India is capable enough. he design team initially came up with a -ehicle
which had bars, which was more of a 3uadricycle than a car, so a failure.
COST CUTTIN0 1EATU"ES
he trunk is only accessible from inside the car as the rear hatch doesn’t open.
/ne wide wiper instead of usual pair.
(o power steering, radio or music can be fitted as accessories.
(o air bags In any model. ="4cc two engine cylinder. (o air conditioning.
o ease the assembly, body panels are glued instead of welded.
hen team grew into 5## members, on a daily basis 5 core members gathered to discuss about de-elopment and suggestions.
$atan ata insisted to change the design, he wanted it to be easy for tall people to get in and out and the height was increased by 1##millimeters.
he initial two cylinder engine was 5#cc, later the capacity raised to ="4cc to ha-e optimum engine performance.
TATA NANO-A 0#OBA# CA"/
hough It succeeded in creating huge market hype before the launch, it took whole " years to sell its 1,##,###th car.
)ouldn’t meet the annual sales e<pectations of ",5#,### cars.
irst reason is the forced mo-ement of production plant from west :engal to sanand, >u2arat because of strike.&?ence company was unable to deli-er cars to first buyer’s in time*
ew fire incidents and resulted media sensiti-ity.
(egati-e word of mouth from non targeted customers who bought the car.
ositioning as &worlds cheapest car* was actually a disaster in global market.
for T%t% N%no
4"i(%lr& Amon' e5istin'
7T+re%t of b%r'%inin' $o.er of
3 ;o. do &ou (ie. T%t%N%no %s
inno(%tion / A di<erenti%ted
Di<erenti%ted = #o. *ost $rodu*t &ata ano is a both a dierentiated produ*t +ith the o+est possibe pri*e.
&ata ano is a o+ *ost *ar by the positionin-itse as the “orlds *+e%$est C%r” +ith a pri*e ta- o /0110111.
Started +ith the theme 2' *ar or everyone3
&ar-eted to +heeer motor *y*e buyer +ho *ant aord 4 +heeers.
6o+ *ost produ*t +ith *ompete entry
eve eatures. &ata ano is dierentiated
in a very dierent manner0
Statin- itse as +ords *heapest
ano born +ith the emotiona tou*h and
that *reated hu-e market hype.
4 T%t% N%no *ould not +%(e seen
t+e li'+t of t+e d%& +%d it not
emb%r>ed u$on % $oli*& of
*oll%bor%tions %nd %lli%n*es Do
&ou %'ree/ ?ustif&/
@ithout collaborations and alliances, ('(/ wouldn’t ha-e reached customer.
:osch being a ma2or player in supplier took a challenge and succeeded in pro-iding with the least cost technology.
>i-ing free decision making to the suppliers made them inno-ators.
@ithout the suppliers the (ano would ha-e been costlier in se-eral factors. he inno-ation was faster as each supplier produced simultaneously.
7nnovation rom dierent suppiers.
&he pants and empoyment mi-ht have in*reased the pri*e o end produ*t.
8reakin- do+n o *omponents and outsour*in-them -ave an option to *on*entrate more on
that parti*uar produ*t.
&ata Motors bar-ained up to 519+ith the suppiers.
6 Des$ite t+e +u'e m%r>et +&$e
%nd t+e 2rst mo(er %d(%nt%'e) it
%$$e%rs t+%t *om$%n& +%s not
%ble to *%s+ u$on in/ do &ou
%'ree .it+ t+is/ +%t %re t+e
re%sons for t+is/
Aes, '' //$0 was unable to cash upon it. :ecause, he annual sales e<pectations of 1 lakh per year was not
It took " long years to reach its 1,##,###th car.
0trikes in west :engal resulted in mo-ement of production plant to sananda, >u2arat which not only resulted in 1
months delay to first buyer and also huge cost. It also resulted in hea-y in-entory costs.
ew fire cases made customers to back out on the -erge of buying, safety does matter.
he sound of " cylinder engine was a ma2or negati-e factor which made it sound like a auto.
(egati-e word of mouth by non targeted customer group. ack of basic features made it 2ust plane product but not a complete car.
he price gap between (ano and 0uBuki alto was only around 5#,### after e3uipping (ano with necessary accessories.
he positioning was a unable to attract customers as they still looked car as a status of symbol.
(o one wants to own a car, that showcases as cheapest car. 0tyle
)raBe o-er " wheelers and con-enience of tra-elling in rural areas with two wheeler in lands.
7 +%t is t+e role of le%ders+i$
%nd str%te'& e5e*ution in
brin'in' out su*+ @ero- b%se
' team of 5## members lead by 5 core members made (ano into reality.
Suggestios !rom e"er#oe
r. wagh used to take suggestions from e-ery person in the plant to make it better and better with least cost.
$ree%om to su&&'iers i R(D
he suppliers are allowed to research for their particular part so that they can come up with inno-ati-e ideas.
or this pro2ect $atanata belie-ed &ogether more can be achie-ed*
ore than 1## suppliers, e-eryone trying to reduce the cost.
Cost re%u*tio ,Low *ost &ro"i%er strateg# wit+ mau!a*turig
strateg#-'nyone with an assembly plant can become a distributer for that particular region.
)ost reduction of each and e-ery part resulted in low price.
ata (ano targeted to motor cycle buyers instead of car buyers. enetration pricing.