The document presents a case study on the Tata Nano, highlighting its positioning as the 'people's car' and targeting India's growing middle class. Despite initial sales goals, the vehicle faced challenges such as low performance and brand perception, resulting in disappointing sales figures. The recommended strategy for 2015 is to reposition the Nano as a premium gift, appealing to young consumers with high aspirations in urban areas.

1. Case Presentation
on
Tata Nano
Group Presenter: Shyam Sundar Gour
Indian Institute of Management Kolkata (IIMC)
EPSM 08
Speak:+919351961181
Jodhpur (Rajasthan)

2. Blue Ocean Strategy of Mr Ratan Tata with Tata Nano
Business Strategy of Tata Motors with Nano
 To create a new passenger car category
 Grab the Price Sensitivity of India potential Car Owners.
 Target the customers of Two-Wheelers (8.5 Million in FY 2009.)
Industry Potential
 Indian Population
 Large and Increasing Middle Class Segment
 Increasing Disposable Income
 Low Penetration of Car’s as compared to U.S.(12 per 1000 versus 765 per 1000 in
U.S.)
Positioning from 2007-2009
 “People’s Car”
 “World’s cheapest Car”
Sales Goal
 350000 in First Year
 Then 1 Million

3. Performance?
Average Passenger Car Sales: 2.5 – 3 Million
Year Nano Sales (*as per Siam)
FY10 30350
FY11 70432
FY12 74527
FY13 53848
FY14 21129

4. Causes of Below expected success of Tata Nano
.
Mileage
Vs
Bikes
Low
Performance
Features
Low Status
Symbol

5. Brand Benefits Highlighted
Happiness
of owning
a car
Expression
of Love
Mileage
Modern
Youth

6. USP’s of Tata Nano
Functional
• Small Length
and Width
• Fuel Tank: 24
Liters
• AMT
Economical
• Low Price
• Mileage
Psychological
• Variety of
Colures
• Central Locking
etc

7. Target Segment Analysis: 2015 (As per Mckinsey Report)
Target Segment: Middle class Indian: 2500000 Indian (19% of Total Population in 2015)
Disposable Income: 2-10 Lacs
Transportation Expenses:
38000-190000 (19% of Total
Disposable Income)
Profile: Increased
Aspirations, Habitual for
Bargaining, Looking for the
low prices.

8. Ongoing Campaign 2015

9. How will you position the Nano to achieve that goal?
Target Segment: Middle Class Young (20-30 Years old)
Geographic Profile: Living at Cities with busy traffic, Small Streets.
Pscygrophic Profile: Trendy, Using Latest Technology, Big Aspirations.
Positioning of Tata Nano: As a premium, unique gift to the for their some one
special (Brother-Sister, Husband-Wife, Son-Father, Father-Daughter) as it offers
convenience, safety, style, ease of driving.
Associations Planned: Festivals, Gifting Behaviour, Culture, Relationships.

10. Why is the recommended positioning strategy superior to other positioning strategies
that might reasonably be considered?
General Considerations while choosing a gift
Joy of Gifting
Unique
Regular
Utility
Something
Big
Memorable
Word
Of
Mouth
Trendy
Stylish
Colorful
Low
cost

11. Thanks