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CASE

CASE STUD

STUDY

Y ON

ON

“TATA-NANO-VATION”

VATION”

Submitted to: Submitted to: Mr. Shakti Dodiya Mr. Shakti Dodiya Submitted by: Submitted by: Prajapati

Prajapati Vishvani Vishvani (45)(45) Rava Shipa (4!) Rava Shipa (4!) Sa"ena Smruti(4#) Sa"ena Smruti(4#)

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About TATA motors About TATA motors

Established

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

largest truck truck manufacturers manufacturers and and world’world’s s third third largestlargest  bus manufacturer

 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

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a

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.

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

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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

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NE !"ODUCT DEVE#O!MENT

IDEA SCREENING

hree ma2or re3uirements of '' otor’s engineers is

ow cost 6 1,##,###7 Emission (orms

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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*

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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.

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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.

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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.

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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.

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S$%&

'naysis

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 !orters 2(e

for*e %n%l&sis

for T%t% N%no

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4"i(%lr& Amon' e5istin'

1irms

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7T+re%t of b%r'%inin' $o.er of

bu&er

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8T+re%t of

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S&P

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CASE

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3 ;o. do &ou (ie. T%t%N%no %s

%n

inno(%tion / A di<erenti%ted

$rodu*t

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Di<erenti%ted = #o. *ost $rodu*t &ata ano is a both a dierentiated produ*t +ith the o+est possibe 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  +heeer motor *y*e buyer +ho *ant aord 4 +heeers.

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6o+ *ost produ*t +ith *ompete entry

eve eatures. &ata ano is dierentiated

in a very dierent manner0

Statin- itse as +ords *heapest

aordabe *ar

ano born +ith the emotiona tou*h and

that *reated hu-e market hype.

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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&/

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@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.

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7nnovation rom dierent suppiers.

 &he pants and empoyment 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*uar produ*t.

 &ata Motors bar-ained up to 519+ith the suppiers.

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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/

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Aes, '' //$0 was unable to cash upon it. :ecause, he annual sales e<pectations of 1 lakh per year was not

reached.

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.

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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.

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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.

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7 +%t is t+e role of le%ders+i$

%nd str%te'& e5e*ution in

brin'in' out su*+ @ero- b%se

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Team work 

' team of 5## members lead by 5 core members made (ano into reality.

Suggestios !rom e"er#oe

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.

Co''a)orati"e a&&roa*+

or this pro2ect $atanata belie-ed &ogether more can be achie-ed*

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O&e %istri)utio

ore than 1## suppliers, e-eryone trying to reduce the cost.

Cost re%u*tio ,Low *ost &ro"i%er strateg# wit+ mau!a*turig

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.

Ni*+e market

ata (ano targeted to motor cycle buyers instead of car  buyers. enetration pricing.

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Figure

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References

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