Communication Plan For Tata Nano


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Communication Plan For Tata Nano

  1. 1. Communication plan for Tata Nano<br /><ul><li>The Indian car market is exploding. Demand for passenger cars is expected to grow at more than 8 per cent a year till 2011-12. By that time, analysts estimate that there will more than 12 lakh new cars on Indian roads every year. In this scenario, it is very difficult to assess What determines consumer choice?What consumers want in a crowded market?How much consumer wants to spend?How to attract consumer to our product? Any few more.....With this background, the Tata Nano launch was well planned considering the needs of Indian and global automobile market. Following consumer preference trend was used as the basis for defining the target positioning and related communication of Tata Nano The above trend indicates consumers all across the emerging markets are moving away from basic vehicles to luxury and greener vehicleswhile the consumers in developed markets are moving more towards their vehicles connected to computers, mobile phones, home, offices etcThis trend put tremendous economic pressure on the vehicle manufacturers as consumers are unwilling to pay extra money for these advancements despite of manufacturers paying exorbitantly high development costs. The crux behind development of Nano lies here, wherein Tata Motors decided to leverage this shift in consumer trend by offering all such features (varies from market to market) while maintaining its operating efficiencies to have sustainable profits.</li></ul>Markets <br />With above reference, Tata Motors observed a need of global platform vehicle catering to the needs of the more than 2 million consumers. Tata Motors decided to systematic launch program targeting bigger pie out of the addressable market in the steps – with initial launch at India followed by launches at SAARC,AASIAN and LA countries in the subsequent years. <br />This decision was entirely pivoted against the current global scenario where in the competitive landscape for the entire industry has changed and started demanding basic mobility vehicles for the masses. This newly evolved segment is termed as “ultra low cost” car segment (ULC). <br />The ULC segment is present in all countries across the globe comprising <br /><ul><li>vast majority of customers, who are owners of two-wheelers, used car owners and owners of new cars in the A/ B segment (Entry Compact & Premium Compact)
  2. 2. younger generation and mostly salaried
  3. 3. very price sensitive &
  4. 4. tech savvy</li></ul>Tata Motors, with detailed market research, identified the need of ULC segment across various target countries and planned development and introduction of Nano accordingly.<br />Mission<br />With the target market in vision, mission of Nano was clear to build a car small enough for the individual to run and care for, [of] the simplest designs that modern engineering can devise, [and] low in price. The same reference was used as the base for the communication plan and world wide buzz was created (well before the scheduled launch) about Nano as the world’s cheapest cars (or a car available at $2500). Because of the stronger base, the communication plan became really successful and created Nano as Brand and which in turn helped to change the brand equity of Tata Motors from local player to most innovative global player.<br />The success of the campaign can be judged based on the enormous requests and inquiries received from all across the world inviting Tata Motors to produce Nano in respective countries and cater to demand of the masses.<br />Message<br />It was every important for Tata Motors, to create awareness about the product (Nano) and the company itself as on global scale brand Tata had got meek visibility. <br />The message’s correctness was necessary to keep naïve customers (first time buyers or strivers) and was achieved by communicating Nano- a car in which by making things smaller, lighter, do away with superficial parts and change the materials wherever possible without compromising the safety and environmental compliance Tata Motors will give better a world’s cheapest car with millage more than Toyota Prius and gas emission much better than a two wheeler. The idea was to create " pull" factor versus the regular " push" factor that brands need to create to achieve the " pull" . This could only be achieved through clear communication about Tata’s making a fully built car meeting all safety, emission and performance standards but still making it available at through away price. <br />Media<br />Considering the vastness of the target markets and their tech savvy nature; Nano was advertised with a media mix unheard of in India's recent media history -- zero ads on television, a judicious use of print ads and an active Web interface. In the run up to its launch, Nano got the media attention equivalent to perhaps the largest paid advertiser in the country. Tata Motors touched all consumers, via national news television discussion forums with potential buyers, Web chat, interactive newspaper columns, interactive SMS communication and radio call-in programs et al. Even the video games with Nano projecting Nano with various options like power/colour etc were made available free online to attract potential customers. A separate public relationship section was opened in company to react to the queries of people all across the world. Even on the request of various famous museums across the world, Nanos were dispatched to them to become the part of their monuments and thus remain in news away from domestic markets. Also in every “auto-expo” around the globes, Nano are being shown in various forms like Nano Europa (2009) for European markets, Nano EV (2010) to keep the interest of target consumers alive.<br />Money<br />It’s being the cheapest car in the world; Tata Motor didn’t have flexibility of marketing budget like other models. This was mostly due to the paper thin contribution margins on Nano. Tata Motors, very meticulously planned Nano’s communication strategy targeted with emphasis on printed media and web as the major communication mediums. This unusual attaemp help Tata Motors to successfully communicate the offerings of Nano at 2% of its development costs as compared to industry standard of 15%. <br />Measurement<br />Measuring the effectiveness of the communication strategy was wholly judged in case of Nano through <br />a) No of hits the Nano website received after its launch (1.5 million hits in 2 days, the Tata motors server crashed required immediate upgrade to continue the support)<br />b) No of applications once Nano was opted for bookings ( 0.56 million) in 15 days followed by .20 million confirmed bookings<br />c) Post launch customer satisfaction surveys, voting Nano as the mostly satisfying and deserving cars in 2010<br />d) JD Power IQS rating Nano as no 1 car in customer satisfaction surpassing the ongoing most wanted car Hyundai i10<br />Though above results indicate effectiveness of Tata motors communication strategy for Nano, the real challenge lies in front the company when Nano will be made available open sells. This is purely because the success of Nano model and its sustainability.<br /> <br />