Preview

MarketingCase1Team108 V2 Nik

Good Essays
Open Document
Open Document
1805 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
MarketingCase1Team108 V2 Nik
Study Team 108 – Blue Cohort
Study team members:
• Nikita Jain - nikita_jain@berkeley.edu
• Lexi Sturdy - lexi_sturdy@berkeley.edu
• Pierre-Alric Bozo – pierrealric_bozo@berkeley.edu
• Andrew Hill - andrew_hill@berkeley.edu
• Mark Lee - mark_lee@berkeley.edu

Positioning case
(Team Case Analysis One)

MBA 206: Marketing Management

October 12, 2014

Executive Summary- Nikita
Our business objective is to achieve sales of 1.46 mn Nanos amounting to a revenue of $2.4bn in its first year of launch 2009. To achieve this objective, we recommend Tata entering as a prime mover in building the world’s cheapest car for safe and comfortable family commuting for the Indian middle class, revolutionizing the auto industry in India. Connoisseurs of the automotive industry in India, Tata Motors with the production of passenger-cars since 1991, occupies 17% of the Indian market-share in passenger vehicle segment.

Under the ‘Umbrella positioning’ our target customers are Indian middle class families currently owning 2-wheelers for 4-5 person commuting and graduating youngsters for whom Nano would appeal as a stylish alternative while still maintaining maneuverability and affordability of a 2-wheeler. India is a developing economy with a rapidly growing segment of middle class consumers that aspires for a car ownership. The Indian auto industry is projected to grow at a 17% annually with an automobile production of 11mn in 2008-09.Out of this 75% are 2 wheeler owners which we believe is a very good potential market for Nano. We will utilize our strong reputation and long standing relationships to co-liaise with suppliers for inventing this light weight car. By continuing to position our brand as ‘for the people’ and high-quality, marketing will remain consistent through dealerships.

Business objectives for the Nano - Nikita & Lexi
High technology and small size defined the advent of Nano (which means small in Gujarati) in the Indian auto market. The

You May Also Find These Documents Helpful

  • Good Essays

    House of Tata

    • 1221 Words
    • 5 Pages

    |Nano, a passenger car of Tata was the world’s cheapest car and half the |Tata Tea, Titan which unrelated from Tata Motors.…

    • 1221 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Tata NANO Case Study

    • 761 Words
    • 3 Pages

    1. How would you segment the Indian automobile industry? Where will Nano have the best appeal?…

    • 761 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    The idea of Nano–The People’s Car was inspired by the middle class Indians who bought and transported their entire families on scooters. To most middle class families in India owing a car is a far cry. Rattan Tata, Tata Motor’s Chairman said that the tiny car is aimed at keeping the families of India’s growing middle class from having to travel with as many as four people on a scooter. It led him to wonder if a safe, all weather form of transport for a family can be conceived at an affordable price. It took Tata motors four years to realize this concept which today is a People’s Car, which is affordable and yet built to meet safety requirements and emissions. The advent of Nano has seen an increase of about 65 percent of Indian families who can now afford to purchase a car.…

    • 1884 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    Tata Nano is a rear-engine fixed city car able to travel four adults, built by Tata Motors(India). Targeting primarily for the Indian market. The car has a fuel economy of around 26 kilometers per liter of petrol on the highway and around 23 kilometers per liter in the city riding conditions. It announced at the 9th annual Auto Expo on January 10, 2008, in New Delhi, India by TATA’s Managing director RATHAN TATA. The Nano had its commercial launch on March 23, 2009 and a booking period from April 9 to April 25, generating more than 200,000 bookings for the car. The Nano cars started sales to Indian customers after July 17, 2009 with a starting price of Rs 100,000, which is approximately equal to S$ 3,125 or US$2,232 as of March-21 2010. The dual cylinder 624cc petrol engine is an all aluminium unit and is rated at 35 BHP (5,250 rpm) with 48 NM of torque (3,000 rpm). The rear mounted engine transfers power directly to the rear wheels.…

    • 1149 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    The MSIL has a market share of about 55% in the Indian passenger car segment and is the largest manufacturer of small cars in India. The company have been voted as first by Indian customers for level of customer service and customer satisfaction. The company manufactures affordable small cars which serve the needs of an average Indian customer faithfully and hence have a strong brand image as the common man’s car in India, which an average Indian customer identifies with. Such a strong brand image and huge customer base can sustain the position of the company as the market leader in the Indian small car segment.…

    • 536 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The Tata Nano is a city car manufactured by Tata Motors. Made and sold in India, the Nano is the cheapest car in the world today. Before it went on sale a price of 1 lakh (US$1,800), was widely touted. Since its 2009 debut, the price has increased, and, while the Nano remains the lowest cost four-wheeled passenger vehicle in India, it 's significantly more expensive than a motorcycle, a popular means of cheap transport in the country.…

    • 2118 Words
    • 9 Pages
    Good Essays
  • Good Essays

    Frugality

    • 1183 Words
    • 5 Pages

    Typically, when a well-established automaker designs and builds an inexpensive car, the company's thinking is biased by decades of practices and procedures, and by its relationships with employees, customers, and suppliers. The approach reuses existing designs and relies on existing components. In essence, these companies start with a more expensive car and focus on ways to make it cheaper. That may count as a form of cost cutting, but it is not frugal engineering. By contrast, when Tata Motors engineers began creating the Nano, they were inspired more by the three-wheeled vehicles known in India as auto-rickshaws than by any existing car models in Tata Motors' lineup. Building up from the bare minimum enabled the engineers to achieve their cost (and price) targets without compromising the essential functions of the car. If instead the Tata Nano had been designed on the platform of the then cheapest Tata car, it would have been twice the price. Consider the conventional approach: Decades' worth of engineering value is built into even the least expensive of today's automobiles. Components, right down to the steel used, have steadily become more sophisticated, and often more expensive. The cost base, the design thinking, the very idea of what makes an automobile - all combine into a set of structural costs that simply go unquestioned. Reversing course is difficult, and few want to try. For example, if you asked Western designers to come up with a low-cost wiper system for cars, it's unlikely they would challenge the fundamental architecture of two wiper blades. But it would be cheaper to place one blade in the center that sweeps from end to end. India's auto-rickshaws have a single blade. Now, so does the Nano. To achieve the drastically lower prices that emerging markets require, companies must be open to rethinking all aspects of the product. The Nano uses not only just one wiper, but also just one sideview…

    • 1183 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Tata Nano

    • 950 Words
    • 4 Pages

    It was the year 1908 when Ford Motor 's Model 'T ' was launched with a price tag $ 19,700 having the engine of 20 Horsepower (hp) and then in coming years Volkswagen 's 'Beetle ' (1956) and the British Motor 's 'Mini ' (1961) were launched having price of $ 11,333 and $ 11,777 respectively. These Car models brought the Car within the reach of millions of customers. Now exactly after 100 years in 2008 Tata Motors have launched 'Nano ' having the price tag of $ 2,500 with an engine of 33 hp, making the cheapest Car ever made. So with the launch of Nano, Tata Motors has made India proud in the world and also proved the technological mettle of India.…

    • 950 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The Tata Nano responds to the crucial Indian design issue of affordability (it is priced at Rs one lakh), safety and human dignity. The car was designed in Italy’s Institute of Development in Automotive Engineering- with certain changes from Ratan Tata himself.…

    • 753 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Commuting by public transport system consumes time .Therefore, to own their own vehicle is the dream of many individuals and households. Purchasing four -wheeler involves huge amount of outlay. Earlier days and in the recent past, owing a car was possible only to the people of high income group. To help middle income and low income family, Tata’s have launched Nano car at an affordable price ranging from Rs. 1, 30,000 to Rs. 1, 75,000. The car was released in the market with an intention of sweeping the market and to fulfill the dreams of the consumers.…

    • 525 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    tata nano

    • 427 Words
    • 2 Pages

    Brand positioning statement: Tata Nano, For families who are tired of the low velocity, capacity and security of a motorbike and want an affordable safety car to move through the Indian´s streets.…

    • 427 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Tata Nano

    • 2862 Words
    • 12 Pages

    History[edit] After having successfully launched the low cost Tata Ace truck in 2005, Tata Motors began development of an affordable car that would appeal to the many Indians who drive motorcycles.[4] The purchase price of this no frills auto was brought down by dispensing with most nonessential features, reducing the amount of steel used in its construction, and relying on low cost Indian labor, as well as a new design concept called Frugal Engineering.[5]“Frugal Engineering” was a term coined in 2006 by Renault Chief Executive Carlos Ghosen to describe the design process behind the Tata Nano. This type of design concept was designed to better the those at the bottom of the pyramid.[6] However, “A Study on Consumer Perceptions & Expectations for Tata Nano” shows that the bottom of the pyramid is not very aware of what they are getting when purchasing a Tata Nano.[7] While that paper may seem to focus on the Indian contribution, the Nano was a truly international effort. “Tata turned to Germany’s Bosch for a new engine-management system; Italy’s I.D. E. A. Institute and Trilix for styling and exterior design; India’s Sona Koyo for lightweight steering shafts; America’s Johnson Controls for the seating system; Japan’s Toyo for the engine-cooling Germany’s Behr for the heating, ventilating, and air-conditioning system; and India’s Madras Rubber Factory for tougher than normal rear tires.” [8] So to call it the Indian Car is understandable, but misleading. The Nano is an excellent example of LAPD. The "LAPD (lean principle applied product development) process is implemented with utilization of external sources of knowledge and…

    • 2862 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Data of Tata Nano

    • 1769 Words
    • 8 Pages

    Thanks to this survey, we tried to get people’s perception about Nano on several parameters. These are given as under-…

    • 1769 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    Discuss the Strategic Initiative by Mr.Ratan Tata of Launching ‘Nano’, which suggests the cost leadership approach adopted by Tata. Do you think this step may snatch the leadership position of Maruti Suzuki in the Small car segment?…

    • 1701 Words
    • 7 Pages
    Satisfactory Essays
  • Powerful Essays

    Irrespective of some demerits of Nano car like lack of air conditioning, plastic seat covers, no air vents etc in a country where scorching heat takes its toll in summer but one can surely praise the efforts of Tata Motors of rolling out something attractive in terms of price for their countrymen.…

    • 3545 Words
    • 15 Pages
    Powerful Essays