1. Consumer’s Post Purchase
Behaviour Corporation
M.Yusuf K Wardhany 041314353003 Rachma Dessidianti 041314353036
Ifril Rachman 041314353046 Rosalina Linda Susanti 041314353009
Ivan Giovanni 041314353020
TATA NANO

2. ABSTRACT
Tata Nano, World
cheapest Car
vroomed on March
23rd 2009
Few question arose

3. conceptualisation of the TataNano car and the
roadblocks during its production
discuss the dissonance levels in new products

4. • understand the conceptualisation and analyse the causes and concerns in
taking the car from drawing board to board room to the shop floor
• debate on whether the introduction of Tata Nano would herald the new age of
small cars and whether India can become the hub for small cars
• understand the bottlenecks involved in the production of Tata Nano and
critically examine the influence of those bottlenecks
• debate on the success of Tata Nano car in the wake of consumers’ post-
purchase perceptions and assess their levels of dissonance
• raise a general debate on addressing all the possible cognitive dissonance
touch points in the case of new products – launched either by an existing and
established company or a new company.
OBJECTIVES

5. “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. It led me to
wonder whether one could conceive
of a safe, affordable, all-weather
form of transport for such a family.
Tata Motors‘ engineers & designers
gave their all in 4 years to realize
this goal. Today, we indeed have a
People's Car, which is affordable & yet
built to meet safety requirements &
emission norms, to be fuel efficient &
low on emissions. We are happy to
present the People's Car to India & we
hope it brings the joy, pride & utility
of owning a car to many families who
need personal mobility.”

7. INTRODUCTION
Conceptualisati
on of Nano
2003
January 10th, 2008
2009 23rd 2009
First media
appearance of
Nano
Nano rolled
out to the
masses
at 9th Annual Delhi Auto Expo, Ratan
Tata published the small car – Nano as
India’s first contribution to the global
automobile industry, the world’s
cheapest car

8. Tata Nano – World's Cheapest Car:
Causes and Concerns
“It is a ground breaking product”, Ford’s executive vice
president, John Parker said. “the Nano will cause people to
think differently about the car, I have a lot of respect for
Tata.”

9. • Anand Mahindra, managing director for
Mahindra Mahindra, Tata Motors primary
competitor, ”I think it’s moment of history and
I’m delighted an Indian company is leading the
way.”
• Shinzo Nakanishi, managing director of Maruti
Suzuki, India, “We don’t know how to make a 1-
lakh car unless we sacrifice something.”
• The Times of India carried an article “Tata
reinvents the wheel”
• Financial Times, UK called it “The new Model T”

10. From Conceptualisation to the
Making of a Miracle
• Ratan Tata want to make a low-cost
car and be a mode of transportation
in India : a small car
• First mule with a engine of 20 bhp
engine capacity 554 cc, it couldn’t
meet the requirement
• Further, increased to 27 bhp
engine capacity 586 cc
• By 2006, Nano first prototype
‘alpha’ was tested, with redesigned
die-cast engine of 624 cc 37 bhp

11. Next big challenge
• cost reduction in entire process
include material, components,
design human resources without
compromising on quality,
performance style
• persuade vendors to produce
components at low costs by forced
suppliers to re-streamline their
entire process to meet specifications
of cost, performance safety
regulations
• West Bengal government made
Ratan Tata to announce the launch
of the small car project at Singur

12. Small Car – Big Hopes: The Outcome of Tata
Nano Amid All the Roadblocks
• Since the West Bengal
government alloted land
for Nano project at
Singur in August 2008,
the issue was politicised
by the opposition leader
• They demanded the
return of 400 acres of
farmer’s land

13. Further, the presentation of Nano Europa (variant
targeted for int’l markets) at the 79th Geneva
Motor Show on March 3rd 2009, stimulated
global interest about small car

14. “We don’t want
customers to wait for
the car, as my friend
(Fiat chairman Luca
Cordero)
Montezemolo said in
Paris, waiting to buy
a car is like waiting
for a pretty woman.
If you wait too long,
she might get old an
fat.”

15. Nano Variants with Features
Items/Variants
Nano
Standard
Nano Delux CX Nano Luxury LX
AC with Heater - Yes Yes
Front Power Windows - - Yes
Cup Holders in Front Console - - Yes
IRVM Plain Plain Antiglare
Gear Shift Console Basic Basic
High End Console with
Provision for Mobile
Charger
Magazine and coin Holder on
all doors
- - Moulded Door Trim
Map pocket Integral with
Driver Codriver Seat
Fabric
pocket
Fabric pocket Separate plastic trim
Front Seat Headrests Integrated Integrated Integrated
Rear Seat Headrests -
Integrated (With
Nap Rests)
Integrated (With Nap
Rests)

16. Items/Variants Nano Standard Nano Delux CX Nano Luxury LX
Sunvisor on Driver
Passenger side
Yes Yes Yes
Driver Seat with
Slider
Yes Yes (With Recliner) Yes (With Recliner)
Passenger side Seat
with Slider
- Yes (With Recliner) Yes (With Recliner)
Front assist grips Yes Yes Yes
Rear assist grips Yes Yes Yes
Head lamp levelling
Integral feature
through innovative
suspension design
Integral feature
through innovative
suspension design
Integral feature
through innovative
suspension design
Low Fuel Warning
Lamp
Yes Yes Yes
Rear Seat Folding Yes Yes Yes
Intrusion beam
Integral feature
through innovative
door system design
Integral feature
through innovative
door system design
Integral feature
through innovative
door system design

18. Small Car – Big Hopes: The Outcome of Tata Nano
Amid All the Roadblocks
• Marketing strategies focused on viral marketing, innovative
public relations, web search, limited print and other media
advertising
• Marketing innovation with an interactive website –
http://tatanano.inservices.tatamotors.com/
• Its booking on the website was open from April 9th to April 23rd
2009; the delivery began in early July 2009
• Applications for booking of the car would be available in 30000
locations in 1000 cities across India
• Car can be booked by just paying Rs 2999 upfront while the rest
by loan

19. Annexure I (b): Questionnaire's Intended Content
Product - price performance
Experience with the Dealer/
Customer Service
Buying Decision
Following up With Nano's
Developments during the
announcement - booking-
delivery stage
Delivery Product Experience
Tata Nano
Brand Loyalty
1
2
3 4
5

20. Annexure I (a): Questionnaire
SI. No. Data Field Response
1 Name
2 Age
3 Occupation / Profession
4 Annual Income
5 Previously-Owned Personal Transportaton (a) Car/Cars (b) Bike
6 Currently owning cars (a) (b)
7 Used Tata's passanger cars (Indica, Indigo) before
8 Came to know first about Tata's Nano through
9 Decided to buy when
10 Was following up on the Nano's developments
11 Reacting to the Nano's developments
12 Took the delivery of Nano on, from (the dealer):
13 How was the booking and delivery process
14 Had been using Nano for:
15 How was CRM from the dealer
16 How has been the experience of driving Nano
17
What you wish Nano would have had/
Nano could have given you
18 Would you recommend Nano to someone
(a) 200% (b) 100%
(c) 50% (d) No

22. Tata
Nano
–
Common
Man's
car
–
Uncommon
Percep4ons
• Customer 2

23. Tata
Nano
–
Common
Man's
car
–
Uncommon
Percep4ons
• Customer 3

24. Tata
Nano
–
Common
Man's
car
–
Uncommon
Percep4ons
• Customer 4

25. Tata
Nano
–
Common
Man's
car
–
Uncommon
Percep4ons
• Customer 5

26. Tata
Nano
–
Common
Man's
car
–
Uncommon
Percep4ons
• Customer 6

27. Tata
Nano
–
Common
Man's
car
–
Uncommon
Percep4ons
• Customer 7

28. Tata
Nano
–
Common
Man's
car
–
Uncommon
Percep4ons
• Customer 8

29. The RoadAhead
• Despite the buzz created by the Nano as the cheapest car, the
customer’s perceptions are mixed
• At the time this case was published, majority of Tata Nano
customers are not from ‘scooter migrators’
• The prime suspect is the price
• On March 8th 2010, Tata launched a customer service
initiative
• It comprised of 24x7 on-road assistance, fast repairing
service, etc

30. Annexure II: Tata Nano: Consumer's Profiles and Perception
Customer Name
Om Prakash
Jain
Jain Kumar
Agarwal
Satish
Desai
K.S.Rao
Dr.Shyam
Sunder
Dr.Gayatri
Devi
Kamala
Srinivasan
M.Sita
Age 60 45 51 70 50 40 55 34
Occupation Business Business Business Consultant
Consultant
Physician
Ayurvedic
Physician
Retd. School
Teacher
Resource
Manager
Annual Income
in INR Lakhs,
Per annum
2.5 4-5 5-6 10 8 2 1 3
Previously-Owned
vehicles for
Personal
Transportaton
Honda Activa Bajaj Chetak Cars
Hyundai
Accent
Cars No
Hero Honda
Bike, Maruti
800
Bike
Currently owning
others cars
Maruti Alto,
Maruti Swift
Maruti 800
Cevrolet
Optra,
Maruti
Esteem
Maruti SX4 Honda City No No No
Used Tata's vehicles
earlier
Indica
for 2 yrs
No Tata Estate No No No No No
First info about
Nano
Auto Expo
Jan 8th
2008
Auto Expo
Jan 8th
2008
Media Media Media
Auto Expo
Jan 8th
2008
Media Media
Decided to buy
when ?
At the
moment of its
launch
At the
opening of
Bookings
When
announced
the allotment
When
Booking
Started
Auto Expo
Jan 8th
2008
At the time
of its launch
Booking
started
Booking
started
Was following up on
the Nano's
developments
Yes Yes Yes
From the
beginning
Yes Yes Yes Yes
Reacting to the
Nano's
developments
Had faith in
TATAs since
50 years
Publicity-
occupying
1000 acres
of land
No
Comments
Yes No issues
Prestigious
issue for
Ratan Tata
Positive
Faith in Brand
TATA

31. Annexure II: Tata Nano: Consumer's Profiles and Perception
Got the car on -
Dealer: Malik Cars,
Banjara Hills,
Hyderabad
September
27th 2009
December
11th 2009
August
17th 2009
September
11th 2009
1st week of
January
2010
January
2nd 2009
November
2009
September
28th 2009
Model of Nano
(Basic, CX, LX)
LX LX LX LX LX LX CX LX
Cost of Nano
(in INR Lakhs)
2 2 2.08 2.08 2.06 2.03 1.85 2.08
Hassles in the
booking and
delivery process
Hassel were
from SBI
(Banker Side)
But the
Dealer helped
Delays in
financial
matters from
delaer
Comfortable,
no hassles
Hassel Free No
Hassel free
good
Prompt Excellent
Had been using
Nano for
4 months 2 months 6 months 2 months 3 weeks 3 weeks 3 months 3 months
CRM from the
dealer
Good Not Good Good Excellent Good Excellent Good
Not up to
expectation
Nano's driving
Experience
Beautiful Not Good Great Mixed Good Fabulous Nice
Easy to
handle
Wish Nano could
had
Provision for
Music
System
Side Vision
mirrors
without
Pillars
High end
version with
5 gears,
Accesibility
to rear
engine
Accesibility
for engine,
Better
interiors,
Standard
fitments
Sans Rumble,
Space for
Luggage,
Power
steering
Reduce the
height levels
of the seats
and the
luggage
space
Provison of
Dickey
Luggage
space, left
view mirror
Level of confidence
in recommending it
to others
100% 0%
200%
100% for
first time
buyers
Yes 200% 100% 200% 100%

32. The RoadAhead
Launching this initiative, the President of Passenger Cars at Tata,
Rajiv Dube said, “ We want to create deeper customer connect and
believe that through Tata Motors Service Edge, we will achive
greater levels of satisfaction.”