Tata Nano
Introduction
The Tata Nano, first unveiled at the New Delhi auto Expo in 2009, was expected to change the face of automobile sector in India and expand the Indian car market by as much as 65 per cent. However what was supposed to be a game changer failed to take off miserably in spite of the massive hype and the goodwill of Brand TATA.
The problem – Strategy
Though capable of single-handedly making four-wheeled transportation ubiquitous in India, the project as a whole failed miserable, the main reasons being: 1) Inappropriate Branding - TATA-NANO was advertised to be the logical upgrade for a family of four with a two wheeler giving the average consumer an impression that owning a Nano would some how be a confirmation of their poverty. 2) Quality -The cost limitation of 1 lakh resulted in compromises like low quality paint job, no air bags, undersized and noisy engine, small boot and fuel tank. Three Nanos catching fire confirmed the low quality provided. 3) Promotion – Use of non-conventional marketing using social-media, unplanned advertising campaign, absence of a strong well-knit dealer network coupled with delayed roll out after the initial launch in 2009 fizzed out the excitement of the target audience.
Recommendations:
Following are the recommendations we suggest for improving the sales of the Nano with its 2013 launch: 1) Promote Nano based on the attributes like performance, efficiency instead of affordability 2) Develop a new Marketing Strategy to target masses of India and showcase the Nano as an aspirational product for them instead of coming across as an accessory for the rich. 3) Expand Market by exporting to countries with similar economical conditions like India like Indonesia, Eastern Europe, Brazil etc. 4) Alter pricing model to make it cost-effective, reducing the losses Tata incurs per car, as well as giving the brand a facelift.
The Tata Nano, first unveiled at the New Delhi auto Expo in 2009, was expected to change the face of automobile sector in India and expand the Indian car market by as much as 65 per cent. However what was supposed to be a game changer failed to take off miserably in spite of the massive hype and the goodwill of Brand TATA.
The problem – Strategy
Though capable of single-handedly making four-wheeled transportation ubiquitous in India, the project as a whole failed miserable, the main reasons being: 1) Inappropriate Branding - TATA-NANO was advertised to be the logical upgrade for a family of four with a two wheeler giving the average consumer an impression that owning a Nano would some how be a confirmation of their poverty. 2) Quality -The cost limitation of 1 lakh resulted in compromises like low quality paint job, no air bags, undersized and noisy engine, small boot and fuel tank. Three Nanos catching fire confirmed the low quality provided. 3) Promotion – Use of non-conventional marketing using social-media, unplanned advertising campaign, absence of a strong well-knit dealer network coupled with delayed roll out after the initial launch in 2009 fizzed out the excitement of the target audience.
Recommendations:
Following are the recommendations we suggest for improving the sales of the Nano with its 2013 launch: 1) Promote Nano based on the attributes like performance, efficiency instead of affordability 2) Develop a new Marketing Strategy to target masses of India and showcase the Nano as an aspirational product for them instead of coming across as an accessory for the rich. 3) Expand Market by exporting to countries with similar economical conditions like India like Indonesia, Eastern Europe, Brazil etc. 4) Alter pricing model to make it cost-effective, reducing the losses Tata incurs per car, as well as giving the brand a facelift.