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    TATA Nano

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    saad
    Ratan Tata had three options to position the Tata Nano brand: as a family transport safer than a motorcycle, cheaper than all available cars, or focused on a specific group and usage. However, targeting multiple segments could be risky. The analysis recommends targeting India's growing middle class population, projected to rise to 19% by 2015 and 41% by 2025, specifically middle class living in cities concerned with affordability, fuel efficiency, and family transport. Lastly, Tata should advertise the Nano as the "most affordable car" instead of the "cheapest car" to avoid negative perceptions.

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    TATA Nano

    Uploaded by

    saad
    20 views1 page
    Ratan Tata had three options to position the Tata Nano brand: as a family transport safer than a motorcycle, cheaper than all available cars, or focused on a specific group and usage. However, targeting multiple segments could be risky. The analysis recommends targeting India's growing middle class population, projected to rise to 19% by 2015 and 41% by 2025, specifically middle class living in cities concerned with affordability, fuel efficiency, and family transport. Lastly, Tata should advertise the Nano as the "most affordable car" instead of the "cheapest car" to avoid negative perceptions.

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    Tata Nano Case analysis

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    Ratan Tata had three options to position the Tata Nano brand: as a family transport safer than a motorcycle, cheaper than all available cars, or focused on a specific group and usage. However, targeting multiple segments could be risky. The analysis recommends targeting India's growing middle class population, projected to rise to 19% by 2015 and 41% by 2025, specifically middle class living in cities concerned with affordability, fuel efficiency, and family transport. Lastly, Tata should advertise the Nano as the "most affordable car" instead of the "cheapest car" to avoid negative perceptions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    20 views1 page

    TATA Nano

    Uploaded by

    saad
    Ratan Tata had three options to position the Tata Nano brand: as a family transport safer than a motorcycle, cheaper than all available cars, or focused on a specific group and usage. However, targeting multiple segments could be risky. The analysis recommends targeting India's growing middle class population, projected to rise to 19% by 2015 and 41% by 2025, specifically middle class living in cities concerned with affordability, fuel efficiency, and family transport. Lastly, Tata should advertise the Nano as the "most affordable car" instead of the "cheapest car" to avoid negative perceptions.

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    Problem Statement

    Before the launch date of TATA Nano, Ratan Tata, chairman of Tata Motors limited, was
    exploring the options to position its new brand. The three options available at that time
    were: 1) family transport that is safer & comfortable than a motorcycle, 2) cheaper than
    all available cars, 3) focus on specific group and usage situation. With so many options
    available, it was a difficult decision to make.
    Background
    Back in 2009, the automotive industry in India was dominated by Motorcycles with 76
    percent share of all vehicles sold. Popularity of motorcycles was based on the fact that
    they were affordable, fuel efficient, low maintenance and easy to maneuver. Prices of
    these motorcycles ranged between 15 thousand to 75 thousand. Moreover, cheapest
    vehicle available in the was Suzuki Maruti, which costed 2 lakhs at that time.
    Considering these facts, Tata wanted to introduce a vehicle that could infiltrate the
    market as most affordable four wheelers. Secondly, Tata wanted to introduce vehicle that
    could provide solution to middle class and family of 4, who otherwise would have
    travelled on bike. This inspired Tata to manufacture Nano and introduce it in India.
    Lastly, in order to penetrate rural market, Tata wanted to distribute assembly of Nanos to
    entrepreneurial engineers, who could serve the masses by maintaining high production of
    cars.
    Analysis and Recommendations
    Targeting multiple segments might be risky as it will require a generic positioning. For
    instance, Nano might not be suitable for people living in rural areas considering improper
    road networks and long distances. A small car with lower-end engine is only suitable for
    people living in big cities. Furthermore, not every individual in a city might be attracted
    by such a product, for example, an affluent might never want to buy a small car, which
    lacks fancy features. Similarly, people who can barely afford a 15 thousand worth
    motorcycle should not be targeted as well.
    The best possible solution is to target middle class, which back in 2005 constituted 5
    percent of total population. Middle class population is expected to rise to 19 % by 2015
    and 41 % by 2025. Moreover, the target audience should be narrowed to middle class
    people living in cities and towns, as these people are mostly concerned about
    affordability, fuel efficiency, ease maneuverability and a vehicle that could help their
    family to commute.
    Lastly, Tata should advertise the new model as ‘most affordable car’ instead of labeling it
    as ‘cheapest car’. Such a label might give negative image to the product and it would be
    very difficult to change perspective afterwards.

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