Tata nano-vs-maruti-800 www.gameswala.com

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Project Report

On

New Product Development With

Tata Nano

And

Comparitive Study On Maruti 800

Submitted To Submitted By
Mr. Rajiv Bhandari Priyank Mehrotra
BBA VI Sam.
R No. 915605

http://www.gameswala.com/ 1


PREFACE

This is the specialization project on a
study on new product development for Tata Nano along
with a comparative study between Tata Nano and
Maruti 800. The objective of this study is to gain
knowledge about how Tata brought this new product
i.e., Nano up to the development stage and finally going
to launch it on 23rd of March.

During the project I researched on how
Tata developed Nano costing Rs 1 lakh and what will be
its effects. This study also includes comparison between
Tata Nano and Maruti 800. A survey was also done for
understanding consumer buying pattern and
preferences.

Thus, this study is based on new
product development in marketing for Tata Nano.



ACKNOWLEDGEMENT

I am thankful to INVERTIS INSTIUTE OF
MANAGEMENT who provided me with the opportunity
for carrying out the study.

Under their valuable guidance, constant
interest and encouragement, who have devoted her
ever-precious time from their busy schedule and helped
me in completing the project. Her co-operation was not
only useful for this project but will be a constant source
of inspiration for me in the future.

I express gratitude to various faculty
members especially Rajeev Sir for his valuable guidance
which was a good learning experience in order to make
my efforts successful.

Special, continual assistance while
collecting the data was provided by the respondents. I
wish to acknowledge my special thanks to them for
their help and cooperation in order to complete this
project.


I am also thankful to those who have
helped me intellectually in preparation of this project
directly or indirectly.

I am deeply indebted to the various
sources of information from relevant sites from internet
and books and newspapers which helped me a lot in my
study and helped me to learn a lot.



Table of contents:
Sr.
No. Subject Pg. No

1 Objective of research 6

2 Methodology of research 7

Introduction to the subject –new product
3 development 8

4 Introduction to Tata Nano 20

5 Tata Nano and new product development 26

6 Some myths about Nano 45

Comparison between Nano and Maruti
7 800 50

8 Data collection method 57

9 Analysis of data collection 60

10 Various charts 62

11 Some feedback about Nano 68

12 Conclusion 71



Research objectives

o To study about how a new product- Tata Nano was
developed based on marketing theory of ―new
product development.‖

o To study about what made possible for Tata to
develop and produce a car for just Rs. One lakh.

o To study the objectives and target customers of
Tata’s one lakh car

o To study and compare between Tata Nano and
Maruti 800

o To study on customers buying behavior and
preferences and views about Tata Nano and Maruti
800 by various methods of data collection.



RESEARCH METHODOLOGY
This chapter describes the methodology of the study. This project is
based on information collected from primary sources. After the detailed
study, an attempt has been made to present “A STUDY OF NEW
PRODUCT DEVLOPMENT WITH TATA NANO AND
COMPRATATIVE STUDY ON MARUTI 800”. The data had been
used to cover various aspects like consumer’s preference and customer’s
satisfaction regarding “TATA NANO AND MARUTI 800”. In
collecting requisite data and information regarding the topic selected, I
went to the residents of BAREILLY and collected the data.
Survey design:
The study is a cross sectional study because the data were collected at a
single point of time. For the purpose of present study a related sample of
population was selected on the basis of convenience.

Sample Size and Design:
A sample of 100 people was taken on the basis of convenience. The
actual consumers were contacted on the basis of random sampling.
Research Instrument:
This work is carried out through self-administered questionnaires. The
questions included were open ended, dichotomous and offered multiple
choices.


Introduction To New Product Development

Meaning Of Product:
E.g.:- milk, computer, shoes, service after
sales, railway services etc. a product can be divided into
two categories

o Tangible goods

o Intangible goods

Tangible products are known as goods that
can be touched, felt and seen. E.g.:- computer, mobile
phone etc

Intangible products are known as services
that cannot be touched and seen as the customer can feel
and experience only after utilizing it. E.g.:- service after
sales



New Product Development:

A product can be considered new under the
following situations:-

 New-to-the-world products
 New product lines
 Additions to existing product lines
 Improvements and revisions of existing
products
 Repositioning
 Cost reductions



Stages Of New Product Development

Before the introduction of a product into
the market, it goes through several stages of development.
These stages are known as stages of new product
development. It includes the following:

Idea Generation:

Companies seek new ideas to enhance the
performance of the existing products and to innovate new
ideas. This stage is called idea generation stage. There are
many sources for idea generation. It may be from
customers, dealers etc.

Employees throughout the company can
also be a source of idea. Toyota claims that its employees
submit two million ideas annually over 85% of which are
implemented.



Companies also find good ideas by
researching competitor’s products and services. They can
find out what the customers like or dislike about their
competitor’s products. Ideas can also come from investors.
External research, surveys industrial publications research
and development etc.

But the main source of idea generation is
the customers by their grievances and complains and
feedback. However, although ideas can flow from many
sources, it is not feasible to implement all the ideas
generated due to lack of time and capital.

Idea Screening

The main purpose of idea generation is to
collect a larger number of ideas. However, not all ideas can
be commercially viable. Therefore, the companies filter the
less viable ideas with the help of systematic process.
Companies can use various parameters to screen the ideas
such as market size, technical capabilities, potential
competition etc.



Addressing the following issues will also
help the companies to analysis the attractiveness of ideas.

 Whether the product idea match the
existing products of the company.
 The degree to which the new product can
cannibalize the sale of the existing
product.
 Company’s ability to produce and market
the product.
 Buying behavior and the probable
changes in the environment.

While screening the ideas, an
organization may commit two types or errors.

Drop error where the firm rejects a very good idea.

Cro error where a company selects a poor idea.



Concept Testing And Development:

All ideas that survive in the process of
screening will be studied in details. They will be developed
into mature products. At this stage, the idea is submitted
for the external evaluation to get a feedback from the
market. It helps a firm are organization to collect important
information like customers initial reactions towards the
product development. During this stage, new product idea
is described in the form of one or more benefit that is then
presented to a sample of potential customers for their
reactions.

Marketing Strategy:

Following a successful concept test, the new
product manager will develop a preliminary strategy plan



for introducing new product in the market. The plan
consists of three parts.

 The first part describes the target market size,
structure and behavior for the first few years.
 The second part outlines the planned price
distribution strategy and marketing budget for the 1st
year.
 The third part of marketing strategy plan describes the
long run sales and profit goals and the marketing mix
strategy over time.

Business Analyses.

After management develops the product
concept and market strategy, it can evaluate the business
attractiveness. Business analyses are the first in-depth
financial evaluation of new product to be developed. Here
management needs to prepare sales cost and profit
projections to determine whether they satisfy company
objectives. If they do, then concept can move to the
development stage. SOWT analysis will be conducted at



this stage by the organization. It also includes the
following:

Total sales estimation:-

These are the sum of estimated first- time
sales, replacement sales and repeat sales. Its method
depends upon whether the product is one time
purchase(an engagement ring), an infrequently purchased
products like toaster, auto mobile etc. or a frequently
purchased products like consumer and industrial non
durables.

Estimation costs and profits.

The R&D, manufacturing, marketing and
financial departments estimates the costs. The profitability
of the new product is estimated through various financial
tools. The simplest technique is the breakeven analysis in
which the management estimates how many units of the
product the company would have to sell to break even with
the given price and cost structure. If the management


believes that sales could easily reach the break even
number, it is likely to move the project into development
stage.

Product Development

In this stage, detailed technical analysis
is conducted to know whether the product produced at
costs is low enough to make the final price attractive to the
customer.

Here a working model or a prototype is
developed to disclose all tangible and intangible attributes
of the product. A product protocol is prepared which is a
detailed downiest containing the important attributes that
are expected in the product. Once the protocol has been
developed, it is handed over to the research the
development department to develop the prototype of the
product.



Test Marketing:

The test marketing is the stage where the
product is introduced in a few selected cities. During this
stage, the company has to fate the following expense:

 High advertisement
 High manufacturing cost.
 High distribution cost etc.

For testing the product, marketer needs
to make the decision on the following issues.

 The no. of cities in which the product is to be tested.
 Geographic location of the cities.
 Time to carry ort test marketing



Through this exercise, company can
know the customers response, feedback, suggestions,
complaints and any other changes required to be done for
product modification.

After successfully laughing the product
in selected cities the company launches the new product in
all other cities.

There are certain methods of product testing.

Alpha Testing

In this method, a group of target audience is
selected from the employees of the company.

Beta Testing:

It is carried out at the customer’s site.
Generally, it is applicable for industrial products where the
customization takes place.

Gamma Testing:



It is carried out on a long term basis where
the customers uses the product extensively and gives
response after a long period of time. Say six months.

Commercialization:

The results of the test marketing help
marketers to decide the changes that are needed in the
marketing mix before entering into the market. It also helps
the marketer to decide the amount of production
distribution strategy, selling efforts and other issue like
providing guarantees, service after sales etc. the product
enters the market during the commercialization stage.



Introduction To Tata Motors:
o Tata Motors was established in 1945,
when the company began making trains.

o It has its manufacturing base in
Jamshedpur, Lucknow, Pune and soon
one more plant established at Singur,
West Bengal.

o Product Manufactured - Passenger Cars
and commercial vehicle


o Installed Capacity - 350,000-400,000
vehicles a year

o Investment - Rs 2,500 crore (Rs 25
billion)

o Turnover - $21.9 billion (Rs 967,229
million)

o Employees - 2,46,000/22001

o Tata Motors had created the wealth Rs.
320 billion during 2001-2006 and stood
among top 10 wealth creators in India.

Tata Nano - ONE LAKH CAR
PROJECT “People’s Car”

―A promise is a promise,‖ said Rattan Tata,
Chairman, Tata Motors, on 10th January, 2008, when
the Nano was first displayed at the Auto Show in Delhi.
The Nano project didn’t grab the attention of only



Indians; the entire world had their eyes glued to the
world’s cheapest car.
A truly People’s Car, this time is from India.
Though the dealer price is Rs. 1 lakh, the price on road,
when it will be launched, will reach around Rs. 1,25,00
but it will be still more affordable and will be more eco-
friendly than most other cars giving a mileage of around
23km/liters. The price of the car is such that a lot of rich
and HNIs, if interested, can buy the car just by a single
swipe of their credit cards.
Providing a car worth rupees one lakh car
was the dream of the chairman of Tata motors Mr. Rattan
Tata. And with high qualified IT skills people he has
shown the Indian talents to whole the world.

 Idea conceived by - Rattan Tata
 Cost of development - 1700 crores
 Manufacturing cost
(excluding dealer margin and taxes)- Rs 65,000
per unit
 Development of Design - India
 Time for designing the car - 4 years



 Team - A team of 150 engineers , everyone
below age 28
 Biggest hurdle - To make a car cheap car

without Compromising design

May western countries as well as many foreign
countries have accepted Indian IT skills.

Details Of Nano
Specs:
Engine: 624 cc / 33 bhp
4 door, 5 seater (and yes 4 Wheeled too)
Rear Engine



Weight: 600 kgs
Mileage - 22-23 km/liter
Variants:
Standard
Deluxe (with AC)
Future:
Diesel Variant
Exports outside India or assembly plants outside
Comparison
8% less in length (bumper to bumper) with respect to
Maruti 800 21% more in inner space with respect to
Maruti 800
Looks:
Front side looks more like Matiz (or Spark as we now
call it)Back side looks more like India with those long
tail lights.
Insight:
People often criticize something that is making waves
everywhere. This has also been the case with Tata
Nano. Competitors, safety regulators,
environmentalists and most others conceived the
problems that India will face, when such a car is



available, much before the actual launch of the car.

This will result into:
OLD GENERATION NEW GENERATION

SOWT Analysis

 STRENGTH  Fuel efficient

 Brand name TATA  Safe

 Cost price low  OPPORTUNITIES


 Large market for selling  First car in low range

 Awareness in the  Can hit in global
market market

 WEAKNESS

 Low power

 Not a status symbol

 Delay in manufacturing

 Limited features

 THREATS

 Company rival

 Not sure to hit in rural and semi-urban areas



New Product Development And Nano

As seen before, A product can be considered
new under the following situations:-

 New-to-the-world products
 New product lines
 Additions to existing product lines
 Improvements and revisions of existing
products
 Repositioning
 Cost reductions

As far as Nano is concerned, it falls into new
to the world products in the context that it has made a
history for the cheapest car ever made without
compromising on quality. I.e. best way value analysis.

It can also be considered as new product in
the since of cost reduction as it’s the first time in the
history that such a cheap car is produced.

The story of the Nano is not confined to its
impact on the auto industry. It's a tale that illuminates the



India of today—an eager, ambitious nation with a
combination of engineering talent, a desire for low costs
and value, and the hunger of young managers looking to
break from a hidebound corporate environment. Indeed,
the team that worked on the Nano—on average aged
between 25 and 30—has helped to flatten Tata Motors'
stodgy, multilayered management structure, which has
resulted in an unexpected side-benefit called
"organizational innovation".



Idea Generation And Nano
A dream is born –

Says, ―I observed families riding on two-
wheelers -- the father driving the scooter, his young kid
standing in front of him, his wife seated behind him
holding a little baby. Add to that the slippery roads & Night
time too. It is downright dangerous. It led me to wonder
whether one could conceive of a safe, affordable, all-
weather form of transport for such a family.‖

So when Tata Motors needed someone to take
charge of the company's most ambitious plan yet to build
the world's cheapest car ever Ravi Kant, who by then had
become the company's managing director, again turned to
Wagh. Wagh remembers what he learned marketing the
little truck. "People want to move from two-wheelers to
four-wheelers," he says. "Today they can't afford it."



More and more can, but Indian car buyers
today represent a tiny slice of a potentially giant market
India has just seven cars per 1,000 people. India's auto
industry has grown an average of 12% for the past decade,
but just 1.3 million passenger vehicles were sold in India in
the fiscal year ending March 2006. That means a billion
Indians buy about the same number of cars in a year as
300 million Americans buy in a month.

If four wheels cost as little as two wheels,
that could change fast. About 7 million scooters and
motorcycles were sold in India last year, typically for prices
between 30,000 rupees and 70,000 rupees, about $675 to
$1,600. Tata is targeting a price of 100,000 rupees one
lakh, in Indian terms of measurement or about $2,500 at
current exchange rates, for its small car. That sounds
impossibly cheap in the West but remains three times
higher than India's annual per capita income. The average
pay for factory workers at Tata Motors is just $5,500 a
year.



Idea screening
The next step was the screening of idea. How
is this dream possible? What should they make?

 A scooter with two extra wheels at the back for better
stability?
 An Auto-rickshaw with four wheels?
 A three wheeled car like a closed auto- rickshaw??
 A four wheeled car made of Engineering Plastics?
 A Four wheeled rural car?
 Rolled up Plastic curtains in place of windows?
 Openings like Auto rickshaws from the side
 A four wheeled open car with safety side bars?

But the market wanted a car and if they build a people’s
car it should be a car and not something that people would
say,― Ah! That’s just a scooter with four wheels or an auto-
rickshaw with four wheels & not really a Car.‖



Trying to build a car cheap enough for
motorcycle buyers seems to make sense now but seemed
crazy several years ago when Rattan Tata, longtime
chairman of Tata Motors and scion of the nation's giant
Tata Group conglomerate, first mentioned his dream of
building a one-lakh car in 2003. "They are still saying it
can't be done," he says, insisting that it can and will.
"Everybody is talking of small cars as $5,000 or $7,000.
After we get done with it, there will hopefully be a new
definition of low-cost."



Concept Testing And Developing

Before starting the project, Wagh did
something no one at Tata Motors ever had: He talked to
customers. The three-wheeler men inevitably insisted on a
cheap, dependable truck that could go from village to
market carrying, say, a ton of onions or potatoes, one
night, as sunset approached, Wagh stuck with one
rickshaw driver. He says, "I kept asking the question. Why?
Why? Why do you want a four-wheeler?" Wagh
remembered. Finally, he got the real answer. It turned out
it wasn't really a problem of transportation of vegetables ―If
I had a four-wheeler, I would have better marriage
prospects in my village," the young man said. Drivers of
three-wheelers are looked down upon in India. Wagh
realized that four wheels had emotional, not just practical,
appeal.



Thus the new product was now to be developed.
But what type of product?

The car to cost Rs. 1 lakh on road.

 The car should be built on a different platform than
conventional ones.
 It must be meeting all the safety and regulatory
requirements.
 It has to be built on a scale which shall be more than
double the earlier launches of similar products and the
ramp up must be smooth.
 The car has to be designed so that it can be exported
to other countries as the domestic demand may not
materialize as per projections.
 The car must be a beacon for the Indian Automobile
industry and prove to the world that we are capable to
take any challenge and come out worthy winners.



That quest to build the world's cheapest car
hasn't ended. The Nano should be available this fall, but
the mission began back in 2003, when Rattan Tata,
chairman of Tata Motors and the $50 billion Tata
conglomerate, set a challenge to build a "people's car". Tata
gave an engineering team, led by 32-year-old star engineer
Garish Wagh, three requirements for the new vehicle: It
should be low-cost, adhere to regulatory requirements, and
achieve performance targets such as fuel efficiency and
acceleration capacity.

The design team initially came up with a
vehicle which had bars instead of doors and plastic flaps to
keep out the monsoon rains. It was closer to a quadricycle
than a car, and the first prototype, even a bigger engine,
which boosted the power by nearly 20 per cent, was still
dismal. "It was an embarrassment," says Wagh.



But failure didn’t stop them
they quickly realized it was necessary to bring everyone on
board, "else it leads to last-minute heartache and delays".
Every morning, he would spend an hour or two on the floor
of the Pune factory, insisting that everyone involved—
designers, manufacturing teams, and vendor development
people—be there to accelerate decision-making and
problem-solving.

Over time, Wagh's team grew to comprise
some 500 engineers, an impractically large group to gather
on a daily basis. So instead, a core team of five engineers
gathered every day at three pm to discuss the latest
developments. Each engineer represented a different part of
the car: engine and transmission, body, vehicle integration,
safety and regulation, and industrial design.

The body had to be changed because Rattan
Tata, over six feet tall himself, wanted it to be easy for tall
people to get in and out of the car. "Imagine the plight of
the body designer—he went through hundreds of
iterations, then at the last minute the car length was
increased by 100 millimeters!" Wagh says. The attention to
detail paid off: When the car rolled onto the dais at the



Auto Show in New Delhi in January, and Rattan Tata
stepped out of the driver's seat with ease, it made an
immediate impact.

What shook the automobile world most was
the fact that the designers seem to have done the
impossible: The sleek, sophisticated Nano doesn't look
flimsy or inexpensive. If it had been an upgraded scooter on
four wheels, Tata still would have been applauded for
making a family of four safer on Indian roads. The Nano,
however, affords both safety and status. "The innovation
wasn't in technology; it was in a mindset change".



Business Analysis

Cost

Since the car had to be built within a cost of
Rs. 1 Lac, no conventional design would work as the costs
shall be higher and so the entire car has to be redesigned.

What makes Nano so less expensive can be
well understood from the following diagram



The design has to question the need of each
and every component from the point of view of its necessity
of existence and also the minimum requirements of its
functionality. Value Engineering concepts have to be
deployed to finalize the minimum requirements.

Disruptive Technology:

Is a Technology that brings radical change by
introducing new ways of doing things usually at a
Technology that is:


 Significantly cheaper than existing
Technology.
 Is much higher performing?
 Has greater functionality and
 Is more convenient to Use.
 Brings to market a totally different Value
proposition than the one available and
can change the Paradigm about a
product.

The Guiding factor was that the cost has to
be minimized for each component yet maintaining its basic
functionality.

The Alternatives are:
 Reduce Consumption of Material being
used.
 Alternate Suppliers to get same material
at fewer prices.
 Use alternate materials.
 Eliminate use of Material.



 Eliminate a process Or a Combination of
the above.

The design was outsourced to Italy's Institute
of Development in Automotive Engineering, but Tata
himself ordered changes along the way. Most recently he
vetoed the design of the windshield wipers. His solution: a
single wiper instead of two, giving the car a cleaner look.
THE COST REDUCTION PARADIGM Value Engineering
Alternatives:

The target was very clearly defined that
within the given cost structure of 1 Lac all the components
have to be allocated a maximum price and the same had to
be achieved using the available alternatives.

The Guiding factor was that the tax
structure, on materials and manufacturing, must support
the final cost of Rs. 1 Lac

The Decisions were:



 Establish factory in a tax free zone.
 Get the tax advantages on infrastructure
development.
 Get the suppliers to establish base near
the factory.
 Get special concessions from State Govt.
 In short select a manufacturing location
where all the advantages could be
achieved.

In short select a manufacturing location
where all the advantages could be achieved.

Total sales estimation

Now the question was, ―how much to
produce‖

 It was estimated that the demand for the
people’s car shall be at least twice the
demand for Maruti 800, the lowest end



car. Initial projections were at about 500
K cars per year.
 The basic reason was the conviction that
the target price shall redefine the 4 -
wheeler segment.
 The price decision of Rs 1 lakh is
definitely going to make a lot many
people transit to 4-wheeler fold and that
shall explode the demand.
 F only 10% customers of 9 Million two
wheeler market transit to 4-wheelers it
shall amount to 50% of the passenger
car market share.
 It was decided to set up plants with 5
lacs cars per annum capacity and ramp
the same up in stages, in line with
increase in market demand.

The initial response to the Nano has been
overwhelming and the tiny, Noddy-land car is expected to
help the company cross several milestones. With revenues
at Rs 1,29,994 crore for the financial year 2006-7, and



group companies enjoying a market capitalization of Rs
2,51,487 crore as on January 10, 2008, the Tata Group is
on a strong footing, contributing more than 3 per cent to
India's GDP. Nano, being the world's cheapest car, has
made international players sit up in amazement and the
company has received proposals from some African, Latin
American and Southeast Asian countries to manufacture
the car there.

Product Development
And finally the product was developed with the
following features.
 Engine Capacity Bosch 624 c.c. twin cylinder
 Low capacity, Lighter, sufficient with better Power Rear
Engine to reduce the transmission length using a
balancer shaft.


 4 Speed Manual Gear Box
 All Aluminum Engine
 Higher thermal conductivity than cast iron, Lighter
and so better mileage
 Engine Management System by Bosch
 Superb control over emission and smooth acceleration.
 Dimensions L: 3.1m, W: 1.5m, H: 1.6m
 Less length but more inner cabin space due to height.
Comfortable leg room.
 Independent Front & Rear Suspension McPherson
Strut in Front & Coil spring & trailing arm in rear.
 Better ride than Maruti 800.
 Single piece ribbed steel body with safety features
such as crumple zones, intrusion resistant doors, seat
belts, strong seats & anchorages.
 Safety requirements are adequately met.
 Single Wiper in place of two.
 Cost effective yet functionality is met
 Tube less Tires
 Weight reduced by 2 Kg. Cost reductions 200 Rs. And
in line with modern vehicles
 Instrument console in the centre



 Elegant to look at and can be used both in Left Hand
& Right hand version.
 The list goes on and on.
 The Final verdict

THE CAR COSTS Rs 1 lac

Test Marketing And Commercialization

Nano is soon going to launch by the end of April. It will
be commercialized in whole of India. It is mostly targeted to
the middle class and lower middle class people. The effects
of Nano and its commercialization will be soon known after
it comes into the market.

Some myths about Nano
When Nano was introduced, it
surprised everyone. It had so many features but the cost
was as low as Rs. 1 lakh. This was really amazing. Due to
this, many competitors, governments and others opposed


Nano. Moreover, it’s not a new thing that whenever a new
concept is developed, people oppose. They find more
limitations then seeing the benefits. Following are some
myths about Nano. But these are then proved to be wrong.

Myth no 1

Nano is an unsafe car

 The car has an all steel body.
 It meets the mandatory Frontal Impact requirements.
 It also meets the Side Impact requirements although
they are not mandatory in India.

Myth no 2

Nano will greatly increase the Pollution Level



 The car is Bharat IV and Euro IV compliant although
these norms, which are stricter than the present
Bharat III norms, are yet to be introduced.
 It has lower carbon footprint, 20 mg / Km of Carbon
Dioxide emission as compared to 45mg / Km, emitted
by most of the two wheelers.
 Its Multi Port Fuel Injection system is controlled by an
intelligent Bosch Engine Management system which
controls the combustion cycle precisely to ensure
compliance to all emission norms.

Myth no 3

Nano will struggle to perform
 Although the car has 33 bops as the maximum
horsepower it has a low kerb weight of 550 Kg and so
has a higher power-to – weight ratio when compared to
many existing cars running on Indian roads.
 The car has a matching acceleration to Maruti 800 and
also a good top speed. Although the manufacturers
have estimated 90 Kms as the maximum speed the car
can go up to 105 Kms per hour top speed.

Myth no 4

Nano has very little leg room


 Although the car is 8% smaller than Maruti 800 it has
lot of extra leg room at front as there is no engine
compartment. This also leaves sufficient knee room at
the rear.
 The car has a tall boy type design so there is lot of
head space and also enough Shoulder room.
 The mono volume design and the wheels having been
put at the corners have freed up lot of in- cabin space
and although the car may be registered as a four-
setter, three slim adults can sit comfortably at the
rear.

Myth no 5

Cheap means Uncomfortable

 More comfortable than some of the cars selling at even
twice the price. Leaves sufficient knee room at the
rear.
 Easy to get in & out of the car because of perfect seat
height from the ground.
 Suspension systems are good and the trailing arms
with coil springs are not found in cheap cars. Rear.


Myth no 6



It’s very difficult for a rear - engine car to work.

 Rear engines work in many cheap as well as expensive
cars.
 Auto-rickshaws at one end and Formula One cars on
the other extreme all use rear engines.
 Maruti Omni too has a rear engine, under the seat and
no one has been burnt due to that.
 Cooling is easier in Nano as compared to some vans
and there are the air ducts on either side behind the
edge of the doors, which allow air to seep in for both
cooling & for intake.

Myth no 7

There is a shortage of storage space.

 There is some storage space although not much.
 The rear seat with parcel shelf folds to allow
accommodating a large suitcase.
 Small articles can be placed under the bonnet also.

Myth no 8


Cutting Corners is evident everywhere

 Cost cutting is done by smart designing rather than
taking out the essentials.
 One wiper has been taken out but the functionality is
intact. Wind shield washer fluid jets are mounted on
the wiper itself rather than the body.
 Wheels are held by three bolts instead of four.
 On the contrary, MRF tubeless tyres and all
Alumininium engine, have been used, which are more
expensive than conventional ones.



TATA NANO V/S MARUTI 800
Competitor

As we know the price of Nano car is much
affordable for middle class people. This car can be easily
affordable by middle class people. In the Indian market it
will face only by one competitor that is Maruti – 800, which
produced by Maruti udyog.

The real question arise who will have the last
laugh Tata or Maruti 800?

The answer is neither Tata nor Maruti 800
but they are the buyers who will have the last laugh
Can Nano beat the popularity of Maruti 800. All the things
depend on their marketing strategy that how they will
attract to Indian middle class customers.

Never mind the fact that what was touted as
a Rs.100,000 car will cost at least a fifth more and that's
for the standard non-air conditioned version.
Jagdish Khattar, a former head of Maruti 800
manufacturer Maruti Udyog Ltd, says it's too early to say
whether the Nano will overtake the original.



"It's a good product but it's still too early to
say whether it will overtake the 800 because it caters to a
totally new market segment," he said while watching a live
telecast of Tata's press conference after unveiling of the
Nano. But clearly, at least one other manufacturer was
worried.

Whether or not the Nano will overtake the
Maruti 800, one thing is for sure: the current Auto Expo
will be remembered for Tata's people's car and for that
product alone. It is the Nano that has captured the hearts
and minds of a majority of the spectators.

Price of Maruti in major city of India – 800 (a/c LPG)
(Figures in rupees)

Mumbai 245648
Delhi 228858
Bangalore 231407
Kolkata 236826
Lucknow 232542



TATA NANO V/S MARUTI 800

FEATURES OF TATA NANO COMPRAED TO MARUTI 800

COST:

 The dealer price of Maruti 800 varies from city to city.
The dealer price in Delhi is 1.97 laths and the road
price is approximately 2.28 laky Indian rupees.
 The dealer price of Nano is just 1.00 lakhs rupees and
the road price is only 1.26 lakhs rupees.
So here we can put the equation 2 * Nano = 1*
Maruti – 800



ENGINE:

 Maruti 800: – 800 cc
 Tata Nano :623 cc (better fuel than Maruti 800)

ENGINE TYPE:

 Maruti 800 – petrol/LPG
 Nano : petrol (diesel version will be later)

SEATING CAPACITY:

 Maruti 800: 4+1 person
 Nano: 4+1 person

FUEL TANK CAPACITY:

 Maruti800 : 28 Lt (petrol), 19.2 (LPG)
 Nano: 30 Lt.

WEIGHT



 Maruti 800 – more than 690 kg (gross weight is 1000
kg)
 Nano – more than 600 kg

TOP SPEED:

 Maruti 800 : 120 km/hr
 Nano : 90 km /hr

SEGMENT:

Maruti 800 – middle class people
Nano: lower and middle class people.

FUEL CONSUMPTION:
Maruti 800: city 13.6 and highway 17.6 km
Nano: city 22 km and highway 26 km
DIMENSIONS:
Maruti 800 Tata Nano
Length 3.335 meters 3.1 meters
(131.3 inch
Width 1.440 meters 1.5 meters
(56.7 inch)
Height (55.3 inches) 1.6 meters



 BREAKS:
Maruti800: Front Disk, Rear Drum
Nano: Front Disk, Rear Drum

 COLOURS
Maruti 800

Tata Nano:



The Nano are not much taller and broader
as compared to Maruti – 800 but it has 21 percent
larger spaces in side but 8 percent short than Maruti.

Disadvantages of NANO vs. Maruti 800


1. LPG/CNG version is doubtful.
2. Top Speed will be laser than 800.
3. Space for Language is less.

Data Collection Methods
The success of any project or market survey
depends heavily on the data collection and analysis. It is
necessary that the data collected is a reliable data in order
to achieve the research objective.

For research regarding the views of people
about Tata Nano and its comparison between Tata Nano
and Maruti 800 two types of data collection methods were
used

Primary Data
Secondary Data



PRIMARY DATA:
Primary data is the data, which are fresh and
collected for the first time, and are original in character.
There are various Primary Data Collection techniques,
which have helped in data gathering. This was collected
through questioner.

Questionnaires are a popular means of
collecting data, but are difficult to design and often require
many rewrites before an acceptable questionnaire is
produced.

Advantages:

 Can be posted, e-mailed or faxed.
 Wide geographic coverage.
 Relatively cheap.


 No prior arrangements are needed.
 Avoids embarrassment on the part of the
respondent.
 Respondent can consider responses.
 No interviewer bias.

Disadvantages:

 Design problems.
 Questions have to be relatively simple.
 Time delay whilst waiting for responses
to be returned.
 Several reminders may be required.
 Assumes no literacy problems.
 No control over who completes it.
 Not possible to give assistance if
required.
 Problems with incomplete
questionnaires.



Points kept in mind while preparing the
questioner

 Liberal spacing
 Length of the questioner is kept normal
 Logical Order
 Question are short, simple and to the
point; all unnecessary words are
avoided
 Close ended questions are asked so that
its easy for the respondent to fill the
questioner and also easy to analysis
 Sample population was selected on the
basis of random sampling method.



SECONDARY DATA:

Secondary data are those data, which have
been already collected or published for the purpose other
than specific research need at hand. This data is simply
used up by the researcher for his purpose of collected data
and it’s used for the same purpose. The secondary data
sources here in this project are:

Websites:
www.tatamotors.com,www.marutisuzuki.com,www.autocar
india.com,www.autobid.in,www.overdrive.in,

Books :



Auto Bid Magazine, Overdrive Magazine, Autocarindia
Magazine

Various Results Of Analysis In The
Form Of Charts

% of people who are aware of tata nano
3%
yes no

97%



the % of people who are aware of the tata’s
new product – Nano car is shown with the help of pie chart.

o Here, blue color indicates that people are aware of tata
Nano

o And red color indicates the % of people who are not
aware of tata Nano.

While analyzing the chart, we can know that
only 3% of the total sample population is not aware about
tata Nano. This shows the great effect of media, newspaper
and launching of this product.

Preferences Of Different Age Group Regarding
Buying Of Nano.



8
7
6
5
yes
4
3 no
2 not sure
1 not sure
0 no

15-30 yes
31-45
45-60
above 60

this chart shows the preference of different
age group to buy tata nano when it is launched.

Here on x- axis, no of respondents is given.
And on y – axis the age group is given.

o Blue triangle indicates willingness to purchase tata
Nano.

o Red triangle indicates that the respondent is not
willing to pruchase it

o And green indicates that the respondent is not sure.

While analysing this chart, we can see that
the young generation is egar to buy the product. While due


to some misunderstandings about tata nano, the older
generation doesn’t desire to buy it or are not sure about it.

Preferences Of The Respondents Regarding
Buying Of Maruti 800 And Tata Nano



Preferences for buying maruti 800 or tata
nano

maruti 800
tata nano

this chart shows the preference of the
respondent. The question asked in the questioner was, ―if
you were to buy one of the following, which would you
prefer.‖ the options given were:

Maruti 800 tata Nano

by having a glance at the chart, we can see
that majority went for tata Nano. Maruti 800 got very less
votes. This shows a tough time for Maruti in future.

Views about success of Nano


views on success of nano

success
50% 50%
not sure

the question asked here was,‖do you think
Nano will be successful‖ the options given were

yes no not sure.

It’s very interesting to note here that none of
the respondent said that Nano won’t be successful. As
shown in the chart, the portion of purple color which
shows failure is not there at all.

But again every body does not believe in its
success. As seen form the chart, 50% of the respondent
has a doubt about success of Nano.

Nano- A People’s Car !!!



No of
People, 30

No of
People, 44

No of
People, 14
No of
People, 12

Cost Size Looks Innovation
The question asked here is, ―What is it that makes Nano a
people’s car?‖

By analyzing the chart, we can say that
people consider the cost factor the most for Nano followed
by the innovation. Even looks has got quite positive reply.
Nano is a product that is developed perfectly at minimum
cost without sacrificing the quality.

Some Feedbacks Based On Questioner:


Positive Response

 I have one more angle to look at Nano. I think it is
worlds most hyped about gadget after the iPhone. Did I
just say ―gadget‖. Well, yes Tata Nano is not just a car;
one can also look at it like an expensive gadget which
also gives us mobility. One of the very few cute looking
gadgets that all us geeks will love, who would generally
be interested in stuff that is sleek and powerful. I am
also hopeful that Tata will launch FCV and alternative
fuel cars soon.

 I definitely would like to buy the car. Who would not
want a good car for just 100000 Rs?
 It’s just cool. One should definitely buy it.
 Cheap As it is, but very smart and sexy. I would
defiantly buy it.

 Congratulations to Mr. Rattan Tata. He did a real good
job.



Negative Response

 It is impossible to build a car at such a price. No one
has been able to do it so far. It is just not possible.
 It will be more like a scooter with a roof. I am sure no
one can make the car for the cost of two bikes.
 This car is another auto rickshaw. It will add a lot to
the traffic on road.
 It shall be a half car with no roof. I doubt if it will be
able to go up the flyovers.
 It may be an upgraded Auto-rickshaw with plastic
body. It shall be a very unsafe car as the very idea of 1
Lac car is too farfetched to be true.
 It shall never meet the emission norms. We shall
choke on the poisonous emissions from this car.

The disbelief kept piling up and up and was
further compounded by the competitors adding their own
mite to the speculations.



Mixed Response

 IT HAS NOT BEEN DONE EVER. Even the nearest car
is double the cost. Let us see what Mr. Tata can do to
maintain the price line.
 I am not very convinced but would definitely go for it if
it is safe.
 I hope I can take my family of 4 in this car. I wish
Tata's make this dream a reality.
 I know the talk is that it is a myth. However miracles
do happen. Let us wait and watch.

The reaction was a mixed one. People wished
it to be true but were very cautious about expressing
their optimism.



Conclusion

MY OPINION
After the study of various aspects I found
that –
Nano Car Is Definitely Not For:-

 Someone looking for better performance
 Someone who is looking to impress
 Someone who want to speed trial on Sunday
 Someone who is looking for long drives.
But Nano Car Is Defiantly For –

 Someone who is looking to buy a car but cannot afford
much price.
 A students who want to go college, tuition instead of
bike etc.
 Someone who depends on second hand car.
 For a house wife who can buy a car with her own
savings.
 Someone who depends on scooter.
So Nano is not a basically a luxury cars but it
can fulfilled the all capacity for middle class people.


Impact Of Tata Nano On Life Of Common Man

 In India every one can afford a Nano, just as we buy
any electronic appliances for a home uses.
 Decrease in price of second hand car.
 High traffic on roads due to sale of exceeds car on
roads.
 Increase in loan on car installments.

And finally Nano is definitely better than
Maruti 800.
tata has succeeded in value engineering of
the product and its great success for tata’s. It’s
something on which India can feel proud of. Nano has
been developed effectively.



QUESTIONNAIRE

Que1. Which brand of Car’s do you prefer?

Maruti 800
40%

Tata Nano
60%

Tata Nano 60 Maruti 800 40

60% peoples prefer Tata Nano while 40% prefer Maruti 800.



Que2. Rank the brands of cars according to your preference? (1 for most preferred)

2.5

2

1.5

tata Nano
1 Maruti 800

0.5

0
Design Mileage Company Status Resale Value

Tata Nano Maruti 800

Design 1 2

Mileage 1 2

Company Status 2 1

Resale Value 2 1



Que3. Which form of a Car do you like?

45%

55% tata (other cars)
Maruti (other cars)

Tata (Other Cars) 45% Maruti Suzuki (Other Cars) 55%

55% people like to buy Maruti brand and 45% like to buy Tata brand



Que 4. Which promotional offers attract you most?

15%

40%

Free Gifts
Price Offers
45% Any Other

Free gifts 40% Price Offer 45% Any other 15%

40% attracts for free gifts, 45% attracts for price offer and 15% attract on any other offer.



Que5.Which of these factors affect your purchase?

30% Advertisment
45%
Suggestion from friends &
relatives
Attractive offers
15%
10%
brand Ambassadors

 Advertisement

 Suggestion from friends and relatives

 Attractive Offers

 Brand Ambassadors



30% people buy cars while watching AD on T.V, 15% buying from suggestion of friends &
family, 10% buy cars by checking attractive offers and 45% buying cars while checking their
brand ambassador.

Que 6. Which media of advertisement influence your purchase?

10%
5%
40%
15% Television
newspaper
brouchers
hoarding
30% display

Television 40% Newspapers 30% Brochures 15%

Hoarding 5% Display 10%

40% buying through TV adv., 30% buying through newspaper adv., 15% buying through
brochers, 5% buying through hording boards and 10% buying through display ads.



Que 7. How frequently do you purchase cars?

5% 5%
21%
27%
once in a year
once in a two years
once in a 5 years
once in a 10 years
42% once in a whole life

Once in a Year Once in a Two Years
Once In a Five Year Once in Ten Years
Once in a hole Life



Que8. What according to you is the reasonable price of Cars ?

5%
20% 10%

Below 1 Lakh
Once Lakh

35% 1-2 Lakhs
30%
2-3 Lakhs
Above 3 Lakhs

Below One Lakh 5% One Lakh 10% 1-2 Lakhs 35%

2-3 Lakhs 30% Above 3 Lakhs 20%

5% prefer car prize below 1 Lakh, 10% prefer car prize Rs. 1 Lakh, 35% prefer car prize
between 1-2 Lakhs, 30% prefer car prize between 2-3 Lakhs and 20% prefer car prize above 3
lakhs.



Que 9. If your preferred brand is not available for repeat purchase then what will you do?

30% 30%
Postpone your purchase

Switch over to other brand

40% go to the other showroom to
search for your preffer brand

Postpone your purchase 30%

Switch over to other brand 40%

Go to the other showroom to search for your preferred brand 30%



30% people postpone their purchase while 40% switch over to another brand and 30% go to
another showroom for their prefer brand car.

Que10. If another brand of the same product appears in the market, will you prefer to stop
buying this brand and buy the new brand?

15% 20%

No, not at all
I may consider
35% No, I shall not
30%
can't say

No, not at all 20% I may consider 30%

No, I shall not 35% can’t say 15%



20% will not stop buying their brand while 30% while consider about this and 35% shall
not change their brand and 15% can’t say about this.

Que11. If you don’t like to change to the new brand, then what are the reasons for continuing to
purchase the old brand?

PERSONAL DETAILS

Name:

Address:

Age:
Between 15-30 Between31-45
Between 45-60 Above 60

Gender: M/F

Phone Number:

Marital status:

Education:

Profession:



BIBLIOGRAPHY
Magazines
Auto-India
Auto-Car

Websites
http://www.wikipedia.com/
http://www.tatamotors.com/
http://www.maruti.com/


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