A REPORT

ON

CONTEMPORARY ISSUES

NEW PRODUCT DEVELOPMENT

(Submitted as a requirement of partial fulfillment for the degree of Master of

Business Administration)

RAJASTHAN TECHNICAL UNIVERSITY

Session: 2010-2012

Submitted to : Submitted by:

ANJU SEXANA BASANT SINGH
M.B.A. II sem.

ST. WILFRED’S INSTITUTE OF MANAGEMENT AND TECHNOLOGY

MEERA MARG MANSAROVAR JAIPU

 ACKNOWLEDGEMENT

I take great pleasure to thank and acknowledge the help and inspiration provided by my project guide. I
am thankful to her for providing me a great opportunity for my CIM project. Her guidance at every stage
of the project enabled me to successfully completed this project, which otherwise not have been
possible without her constant encouragement and motivation.

I would like to thank all the faculty members of St.Wilfred’s Institute of Management and Technology
for providing their support as well as encouragement for completion of the project.

BASANT SINGH
 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.

The project was assigned by Dipti Mam (co-ordinator)

and Dwani Mam (assistant co-ordinator).

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 Maruti800. 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.

Table of contents:
 Objective of research
 Methodology of research
 Introduction to the subject –new product development
 Introduction to Tata Nano
 Tata Nano and new product development
 Some myths about Nano
 Comparison between Nano and Maruti 800
 Data collection method
 Analysis of data collection
o Various charts
o Some feedback about Nano
 Conclusion

Research objectives
 To study about how a new product- Tata Nano was
developed based on marketing theory of “new product
development.”

 To study about what made possible for Tata to develop and

produce a car for just Rs. One lakh.

 To study the objectives and target customers of Tata’s one

lakh car

 To study and compare between Tata Nano and Maruti 800

 To study on customers buying behavior and preferences

and views about Tata Nano and Maruti 800 by various
methods of data collection.

RESEARCH METHODOLOGY
 Research methodology deals with the various methods of
research. The purpose of the research methodology is to
describe the research procedure used in the research.

 Research methodology helps in carrying out the project

report in by analyzing the various research findings
collected through the data collection methods.

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

 Tangible goods
 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:

 Tata Motors was established in 1945, when the company began
making trains.

 It has its manufacturing base in Jamshedpur, Lucknow, and Pune

and soon one more plant is going to established at Singur, West
Bengal.

 Product Manufactured - Passenger Cars and commercial vehicle

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

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

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

 Employees - 2,46,000/22001

 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 Ratan 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. Ratan Tata. And with high qualified IT
skills people he has shown the Indian talents to whole the world.

 Idea conceived by - Ratan Tata

 Cost of development - 1700 crores
 Manufacturing cost
(excluding dealer margin and taxes)- Rs 65,000 per unit
 Development of Design - In house in, 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/litre

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
(Info for westerners: Maruti 800 is the benchmark small car
currently available and has been in India for about 25 years. It is
much more popular and reliable than those Chinese Cherry cars)

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  OPPORTUNITIES

 Brand name TATA  Large market for selling

 Cost price low  Awareness in the market

 Fuel efficient  First car in low range

 Safe  Can hit in global 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 and Nano
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 Ratan Tata, longtime chairman of Tata Motors and scion of the
nation's giant Tata Group conglomerate, first mentioned their dream of
building a one-lakh car in 2003. "They are still saying it can't be done,"
they said insisting that it can and will.
 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 Ratan 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 pack auto riksha 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 Ratan 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 Ratan 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.
 If 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.

 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

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-seater, 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 800i?

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 (131.3 3.1 meters
inch
Width 1.440 meters (56.7 1.5 meters
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.

Particulars Tata’s one

lakh car Maruti 800

 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 it’s 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

Books

Analysis of data collection

The feedback 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.
 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 FINALY 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.