Marketing Research Project Report Tata NANO
Marketing Research Project Report Tata NANO
School of Business
Project on NANO
Submitted by:
Himanshu Sharma
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TASK INVOLVED
Qualitative research
OBJECTIVE
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Tata want to become no: 1 in automobile industry (both small and large) and want to provide
everyone with an affordable car of their dream.
BUYER BEHAVIOUR
In India the market for four wheeler is huge.
LEGAL ENVIRONMENT
With the increase in volume of traffic there will be pollution problems and also will increase
the accidents.
ECONOMIC ENVIRONMENT
As the GDP of India is rising the living standard of consumers is also rising and now their
purchasing power is also increasing. So there is more disposable income.
As far as the marketing of the Nano is concern, the affect of the promotion strategy can be
seen during the launch of Nano in Auto-Expo 2008, New Delhi as the car has made huge
impact on national and international media.
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2. Will initial demand may lead to stock out.
3. Whether the prices of ‘Nano’ will be sustained over a period of time with the
economic changes in raw material price rise?
4. With the hike in sales of ‘Nano’, whether the infrastructure of the country will be able
to sustain the volume of traffic?
5. Will the Protest of farmers against Nano plant in Singur affect the sale?
6. Will General Perception of brand “TATA” in small car segment affect the sale?
3. Determining the trends in steel, rubber and other raw material prices
6. Tata is known for heavy commercial vehicle. This common perception can affect the
sale of Nano.
Hypotheses
Conversion of ‘NANO’ to a taxi do not affect the brand image and consequently sales.
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Focus group
Our group conducted a focus group study with 10 respondents from pgp-1, IILM
(GURGAON), Sec-g.
Group Size-10
Characteristics of Respondents:-
All have driving experience
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QUES 1- Will the conversion of Nano into a taxi have an impact on its sales?
21 %
Conclusion-Most of the respondents believes that there will be no impact on sales while
others disagreed with this.
QUES 2- Can the company face the problem of stock out? Will it have any impact on sales?
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Conclusion- A majority of the respondents believe that initially there will be a waiting on the
purchase of Nano because of the increase in number of orders and anyhow it will not affect
the sales.
QUES 3- Will Tata be able to maintain the price of Nano in future if there is hike in cost of
raw materials?
25 %
Conclusion- Most of the respondents believe that the rise in the price of raw material will
lead to a increase in the price of the car while few believes in Ratan Tata’s statement that “
promise is a promise” but still all the respondent believe that there will be no impact on sales.
31.25 %
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Conclusion- Most of the respondent believe that the development in Indian infrastructure
will be able to sustain the volume of traffic while the others believe that there will be traffic
conjunctions. Despite of the traffic conjunctions they will still prefer to purchase Nano.
12.5 %
Conclusion-Most of the respondents felt that the protest by farmers in Singur is for a short
period of time. It is a political issue which does not seems to effect the sales but a quite a few
do not believe in this way. Although the entire respondents feel that Tata’s Nano project in
Singur will lead to the economic development of farmers.
QUES 6- Can the brand name “Tata” (which is known for heavy vehicles) have an impact on
its sales?
25 %
75 %
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Conclusion- Majority of the respondent believe that the brand name Tata carries a good
image in the market while others believe that Tata is not successful in small car segment
which might affect the brand name to an extent.
QUES 7- Can upcoming competition (Renault, Bajaj) have an impact on its sales?
Conclusion- Most of the respondent believe that Nano is the pioneer in small car segment
and backed by strong brand name Tata. It will be able to sustain the upcoming competition
from rivalry entering the same market
QUES 8- Whether safety or cost is the top the priority while buying Nano?
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Conclusion- most of the respondent give safety as there top priority while purchasing Nano
and rest of them think that still Nano will be safer than two wheelers.
QUESTIONNAIRE OF TATA-NANO
1. What is the first thing, which comes into your mind when you think
about NANO?
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2. Instead of purchasing a Bike, will you prefer to go for the NANO?
2. No
3. Which feature of NANO attracts you most, that inspires you to go for
NANO?
1. Red 4. Yellow
2. Blue 5. Silver
2. No
2. No
2. Tata NANO
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1. 1-2 months 3. 4-6 months
10.If the price of NANO rises, would you still purchase it?
2. No
11.Will Tata be able to maintain the price of nano in future if there is hike in
cost of raw materials?
1. Yes
2. No 3. Can’t say
2. Don’t care
2. No
1. Yes 26-35
2. No 36-45
3. Can’t say 45+
Survey
Sample Size-330
Age Groups-20-25
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SURVEY RESULT AND ANALYSIS
(1) The first thing about NANO, which comes in the mind of all age group (male and female) is-
“compact”, “affordable”, “choti si” (small) and “economic”.
ANALYSIS: - Most of the respondents both male and female of all age groups want to purchase NANO
instead of a two wheeler. But the females (70%) between age group 36-45 are highest among all the age
groups.
(3) FEMALE (20-25, 26-35, 36-45 AND 45+ RESP.)
ANALYSIS: - From the finding it came out that most of the respondents both male and female of all age
group consider price as the major purchasing factor while on the other hand there are many who consider
all the factors- price, mileage, design, and interior space. But there is a degree of variation in these
preferences.
(4) MALE (20-25, 26-35, 36-45 AND 45+ RESP.)
ANALYSIS: - In the color preference there is a wide difference in their choices. This is as follows-
• Females love to see their NANO mostly in white and silver colour.
• Males in the age group 20-25yrs give weightage to silver and red, and the remaining age
groups prefer white and silver only
• Yellow is found to be the least preferred colour, while there is a significant likeliness for
the black colour also.
(5) MALE (20-25, 26-35, 36-45 AND 45+ RESP.)
ANALYSIS: - Females in the age group 20-25 explores a shocking preference for NANO to offer it to
their children, also age group 26-35 want to offer NANO to their children, and the age group 36-45 want
to use it as a “Family Car” for shopping and travel and 46+ want to offer NANO as a “gift”.
Males in the age group 20-25 and 26-35 want to use it as a family car for shopping and travelling. And the
age group of 36-45 give their preference for NANO to offer it to their children. And 45+ want to offer
NANO as a gift.
FEMALE (20-25, 26-35, 36-45 AND 45+ RESP.)
ANALYSIS: - Promotion of Tata NANO in the “Delhi’s Auto Expo” proved to be a great success for
NANO. And with the time before its launch on the roads it (NANO) emerged as the people’s car.
MALE (20-25, 26-35, 36-45 AND 45+ RESP.)
ANALYSIS: - All the age groups would like to recommend NANO to their relatives once they have a
good driving experience of NANO after its launch.
MALE (20-25, 26-35, 36-45 AND 45+ RESP.)
ANALYSIS: - Most of the people of all age group do not care about NANO being used as a taxi, as they
feel that this will not hurt their feelings regarding NANO. But females of age group 20-25 do not favour
NANO being used as a taxi as this will embarrass them.
MALE (20-25, 26-35, 36-45 AND 45+ RESP.)
ANALYSIS: - All the people believe that there will be a huge traffic problem with the increasing number
of NANO running on the roads.
MALE (20-25, 26-35, 36-45 AND 45+ RESP.)
FEMALE (20-25, 26-35, 36-45 AND 45+ RESP.)
ANALYSIS: - Females of age group 20-25 and 36-45 can’t trust NANO for safety while the age group
26-35 and 45+ do believe in NANO for safety.
In case of the males, the age group between 20-25 and 26-35 can’t trust NANO for safety, while the
others do believe NANO for safety.
SUGGESTIONS
1. Tata should increase the production of NANO so that customers don’t have to wait much for their
car, as they feel urgency for NANO.
2. As people believes that NANO is people’s car, and will be affordable by common men which was
a dream earlier for them. So the price should be kept stable in future with the increase in price of
raw material. Otherwise it will be out of their reach and people believe in Mr. Ratan Tata’s
statement of- “Promise is a promise”.
3. Tata should give exchange offer against a two/four wheeler so that those consumers can be easily
converted to NANO users.
4. Safety measures can be enhanced, because people consider it as their prime concern while
purchasing.
ANALYSIS OF NANO
Project on marketing research was a learning experience and brought us close to NANO and
provided us depth knowledge through focus group and survey.
• Focus group ended up with innovative findings, which helped us in going further on the
research. But some time in between the focus group was leading to group discussion.
Which was handled carefully without hurting the feelings of the respondents?
Survey highlighted some futuristic facts about NANO, i.e. Females in the age group 20-25yrs
want to offer NANO to their children. Respondents understood this question with their own
interpretations. Which tells us that questions asked to the respondents should be more simplified?
Because the respondents are diversified.
LIMITATIONS
"Not even a single thing could be taken as perfect in the Human Resource. If there are some
opportunities and scope of a task there must also be some limitations either in performing or in
their outcomes. We could not ignore our project work's limitations too."
This research is carried out with where so many variables are acting on the research
settings. It is not comparable anyway to be controlled laboratory situations as
available in physical and other exact sciences.
It is out on individuals, executives etc. who are human beings. Human beings have
tendency to behave artificially when they know that they are being observed. So the
respondents start behaving artificially when they know that their attitudes, opinions
beliefs etc. are being studies. This aspect of human behavior distorts the study results.
Subjectivity is the main limitations of such studies. It is very difficult to verify the
research results. Also the replications of the same group of respondents produce
different research results. Verifications very difficult particularly when the primary
data has been collected and used as we have done i.e. main emphasis are on primary
data in our project.
These sorts of projects take generally longer period than other ones. The time by
which the research results are presented. Situation may undergo a change. Hence,
time gap may effects the successful implementations of research results.