Tata Nano, intended as an affordable car for low-income families in India, faced many challenges after its launch that prevented it from being successful. It was marketed as a car for those who could barely afford one, but customers saw it as a compromise instead of something aspirational. Additionally, production issues, safety concerns from vehicle fires, lack of adequate financing options, and a distribution strategy that did not reach its target rural audience all hindered sales. For Tata Nano to now succeed, it needs to change its positioning away from being seen as the "cheapest" or "poor man's" car, and better communicate features and benefits to appeal to customer aspirations rather than just price.
Marketing research project on tata nanoProjects Kart
The document summarizes a marketing research project on perceptions of the Tata Nano car among young executives. It describes the research objective, design, sampling, data collection, and analysis. A survey of 50 students found that the majority perceive the Nano as a trendy, fuel-efficient city car rather than a rural vehicle, and as a "people's car" that is affordable for the masses. Most agreed it has qualities like being trendy, safe, and environmentally friendly.
Tata Nano is an inexpensive, rear-engined, four-passenger city car produced by Tata Motors of India. It was designed to be affordable for the average Indian citizen, with a base model price of around $2,500. To keep costs low, it uses plastic and adhesive in place of welding and lacks amenities like air conditioning, power steering, and airbags. Despite safety concerns from some, the Nano addresses a need for basic, affordable transportation and has the potential for global appeal if Tata can control costs and improve perceptions of the car's safety.
Tata Nano targets lower-income families in India as the world's cheapest car. However, buying a car involves a complex decision-making process. Research found that while price is important, consumers also consider safety, features, and information from others. While some are satisfied owners, many prospects remain concerned about safety. Younger unmarried men are most interested, but the target audience could expand to include drivers from lower-middle class families through improved marketing and addressing outstanding safety questions.
This document presents a study on customer satisfaction with the Tata Nano GenX car in Ranchi, India. A survey was conducted with 25 recent Nano GenX owners to understand their satisfaction levels. The study found that after-sales service, mileage, and comfort had the strongest relationships with overall satisfaction. Younger customers reported higher satisfaction than older customers. The study recommends improving the car's image through advertising, celebrity endorsements, and focusing on mileage, looks, and technology to increase satisfaction levels.
This document outlines a project to study customer satisfaction with the Tata Nano car in the Ramtek area from October to November 2012. The project aims to understand customer psychology when buying the Tata Nano and ascertain satisfaction. Objectives include studying marketing strategies used by Tata Motors for the Nano, determining public opinion, and collecting primary data through surveys and interviews. The sample includes 50 Nano users and 200 general public members. The results will help small manufacturers design products for lower income groups.
The document discusses factors affecting car buying behaviour in India. It provides an overview of the automobile industry in India, including key statistics and segments. It notes that the industry is growing rapidly, influenced by government policies and foreign investment. It also briefly outlines the major players in segments like cars, two-wheelers, commercial vehicles, and three-wheelers. Price ranges for popular car models in India are listed at the end.
A study of consumer behavior on small carsProjects Kart
This document is a study on consumer behavior for small cars in India. It includes an executive summary that outlines the objectives of analyzing brand personality and measuring customer satisfaction for selected car brands. The introduction defines the importance of word-of-mouth recommendations and measuring customer willingness to recommend products. The overview provides context on the growth of the Indian auto industry and market segments.
Marketing research project on tata nanoProjects Kart
The document summarizes a marketing research project on perceptions of the Tata Nano car among young executives. It describes the research objective, design, sampling, data collection, and analysis. A survey of 50 students found that the majority perceive the Nano as a trendy, fuel-efficient city car rather than a rural vehicle, and as a "people's car" that is affordable for the masses. Most agreed it has qualities like being trendy, safe, and environmentally friendly.
Tata Nano is an inexpensive, rear-engined, four-passenger city car produced by Tata Motors of India. It was designed to be affordable for the average Indian citizen, with a base model price of around $2,500. To keep costs low, it uses plastic and adhesive in place of welding and lacks amenities like air conditioning, power steering, and airbags. Despite safety concerns from some, the Nano addresses a need for basic, affordable transportation and has the potential for global appeal if Tata can control costs and improve perceptions of the car's safety.
Tata Nano targets lower-income families in India as the world's cheapest car. However, buying a car involves a complex decision-making process. Research found that while price is important, consumers also consider safety, features, and information from others. While some are satisfied owners, many prospects remain concerned about safety. Younger unmarried men are most interested, but the target audience could expand to include drivers from lower-middle class families through improved marketing and addressing outstanding safety questions.
This document presents a study on customer satisfaction with the Tata Nano GenX car in Ranchi, India. A survey was conducted with 25 recent Nano GenX owners to understand their satisfaction levels. The study found that after-sales service, mileage, and comfort had the strongest relationships with overall satisfaction. Younger customers reported higher satisfaction than older customers. The study recommends improving the car's image through advertising, celebrity endorsements, and focusing on mileage, looks, and technology to increase satisfaction levels.
This document outlines a project to study customer satisfaction with the Tata Nano car in the Ramtek area from October to November 2012. The project aims to understand customer psychology when buying the Tata Nano and ascertain satisfaction. Objectives include studying marketing strategies used by Tata Motors for the Nano, determining public opinion, and collecting primary data through surveys and interviews. The sample includes 50 Nano users and 200 general public members. The results will help small manufacturers design products for lower income groups.
The document discusses factors affecting car buying behaviour in India. It provides an overview of the automobile industry in India, including key statistics and segments. It notes that the industry is growing rapidly, influenced by government policies and foreign investment. It also briefly outlines the major players in segments like cars, two-wheelers, commercial vehicles, and three-wheelers. Price ranges for popular car models in India are listed at the end.
A study of consumer behavior on small carsProjects Kart
This document is a study on consumer behavior for small cars in India. It includes an executive summary that outlines the objectives of analyzing brand personality and measuring customer satisfaction for selected car brands. The introduction defines the importance of word-of-mouth recommendations and measuring customer willingness to recommend products. The overview provides context on the growth of the Indian auto industry and market segments.
This document summarizes research into consumer buying behaviour for cars in India. The research found that Maruti Suzuki has the strongest brand with 42% market share, followed by Hyundai. Nissan was identified as the weakest brand. Television advertisements were found to be the most effective promotional strategy. Consumer decisions are influenced most by brand name, reliability, and after-sales service. The recommendations include focusing on innovative advertising, improving technology, reasonable pricing, and enhancing after-sales service.
A project report on measurement of customer satisfaction level on tata indica...Babasab Patil
The document is a research report on measuring customer satisfaction with Tata Indica passenger cars. It provides background on the growth of the Indian automobile industry following economic reforms in 1991. The report focuses on measuring customer satisfaction with Tata Indica cars through surveys with 100 owners in Belgaum region. Key findings include that most owners have an income between 250,000-400,000 rupees and own diesel versions with AC and power steering. The report provides recommendations such as increasing awareness of different versions and improving vehicle maintenance to increase customer satisfaction.
Management research project Maruti SuzukiPramod Patil
This document appears to be a research report submitted for a postgraduate management program. It analyzes consumer preferences for Maruti Suzuki cars in India. The report includes an index, objectives of the study, research methodology used including sample size and data collection methods, data analysis and interpretation using statistical tools like frequency distribution, crosstabs, t-tests and ANOVA. The data analysis examines factors influencing consumer preference like fuel type, attributes valued in cars, dealer expectations and offers, service center usage, banks preferred for loans, views on brand ambassadors and price perceptions. The conclusions suggest areas for Maruti Suzuki to improve based on consumer feedback.
Kanishka Singh's report analyzes Yamaha Motor India's performance in the two-wheeler automobile industry. Yamaha aims to capture 10% of India's growing two-wheeler market share by expanding production capacity to 2.5 million units annually by 2023. However, Yamaha faces challenges including lack of innovation, ineffective marketing, high costs, and losing market share to competitors introducing more affordable vehicles. The report provides recommendations such as introducing budget models and improving after-sales service to help Yamaha achieve its market share goals.
Tata motors final project on consumer satisfaction.Joydip Roy
This document provides an overview of the sales and distribution systems of Tata Motors and Fiat in India. It discusses Tata Motors' dealership model, which the author studied as part of an internship. It also describes the automobile industry in India, major players, vehicle price segments, and trends in domestic sales. The author's research methods including conducting surveys of customers and potential customers.
Customer satisfaction on services provided by maruthi suzuki and tata motorsProjects Kart
A comparative stud on customer satisfaction with regards to services provided by Maruthi Suzuki India Pvt. Ltd. and Tata Motors. This project report has a detailed questionnaire to understand the customer satisfaction in Hassan, Karnataka. Visit http://www.projectskart.com/p/contact-us.html for more information.
This paper attempts to decode the impact of covid-19 on automotive customers’ purchase journey, discusses the ‘new normal’ expected to emerge for automotive oems and provides recommendations on how digital solutions will transform the traditional customer journey. See more: https://www2.deloitte.com/in/en/pages/strategy/articles/in-consulting-elevate-human-experience-automitve-customer.html
This document is a project report submitted by Mr. Jiten H Menghani to the University of Mumbai for his M.Com program in the academic year 2013-2014. The report focuses on customer relationship management practices at Maruti Suzuki in India. It includes sections on the history of the Indian automobile industry and Maruti Suzuki, an analysis of Maruti Suzuki's customers and competitors using tools like Porter's Five Forces, and a discussion of Maruti Suzuki's approaches to analytical, operational, and strategic customer relationship management. The goal of the report is to evaluate Maruti Suzuki's CRM strategies and practices.
The document discusses the Tata Nano car, which was launched in India to provide affordable transportation but received a lukewarm response. It summarizes the background of Tata Motors and the specifications of the Nano. While the Nano was anticipated to expand the car market, sales have been dismal due to it being seen as a "poor man's car". The paper aims to analyze why the positioning failed and provide recommendations to change the brand perception.
Maruti Udyog Ltd was established in 1981 as a joint venture between the Indian government and Suzuki Motor. It has been the top-selling car maker in India for over a decade. The company aims to modernize the Indian automobile industry and produce fuel-efficient vehicles. It has a strong customer relationship management program including various loyalty programs, financing options, and extensive customer service across India.
Analysis of Research in Consumer Behavior of Automobile Passenger Car CustomerGagan Gouda
This document summarizes research on consumer behavior for automobile passenger car customers in India. It discusses the different segments of the Indian car market, from small cars to luxury cars. The research aims to identify the key factors that influence customers' preferences for different car segments. It describes the car purchase decision process and how various consumer behaviors can affect preferences across segments. The findings can help car manufacturers better understand customer expectations and target their market offerings.
Customer satisfation among the automobile company maruti (1)rana rahul
This document is a summer training project report submitted by Rahul Rana for their MBA degree. It includes an introduction outlining the objectives of studying customer satisfaction of small cars, specifically Maruti Suzuki in Greater Noida. It also includes sections on company profile, research methodology, data analysis, findings, conclusion, limitations, and recommendations. The report aims to understand factors influencing car purchases and customer satisfaction levels.
Consumer behaviour towards Toyata projectfarhan2193
Toyota is a Japanese automotive manufacturer known for reliability and fuel efficiency. The document discusses a consumer behavior project conducted on Toyota owners in Delhi, India. It provides Toyota's company profile and details the objectives, scope, methodology, and findings of the project. Key findings include that Toyota Innova and Etios models were most popular, automatic transmission and petrol fuel types were preferred, reliability and brand image influenced purchase decisions, and safety and comfort features were priorities for owners.
This document discusses hatchback cars in India. It begins by defining hatchbacks and their popularity in India, noting that the Maruti 800 and Alto have been top sellers. It then reviews some of the most popular current hatchback models in India, including the Maruti Alto, Swift, and WagonR, as well as the Hyundai i10 and i20. Key factors influencing hatchback purchases are identified as price, fuel economy, space, comfort, and brand name. Maruti Suzuki is highlighted as the most trusted brand in India's hatchback market.
The document analyzes the Indian automobile hatchback market, which accounts for over 70% of passenger car sales. It divides the market into segments - A, B, and B+. The A segment focuses on entry-level cars priced under Rs. 3 lakh. The B segment sees more options and features in cars priced from Rs. 3-5 lakh. The premium B+ segment for cars over Rs. 5 lakh is growing due to more affluent buyers. Overall, the analysis suggests new hatchback launches focus on competitive pricing while delivering on efficiency, space, and value to succeed across the various segments.
The document analyzes the Indian automobile hatchback market segmented into A, B, and B+ segments based on price and features. It notes that the A-segment is dominated by Maruti Suzuki and Tata with their Alto and Nano models respectively, accounting for 25% of hatchback sales. The B-segment sees higher sales of 60,000 units monthly led by Hyundai's Santro and i10, while the B+ segment, catering to premium hatchbacks, sees most new launches and is where "all the action is". It recommends that new entrants focus on competitive pricing, fuel efficiency, and practicality to succeed across segments.
This document appears to be a summer training report submitted for a Master's degree program. It provides an introduction and overview of Maruti Suzuki India Limited, including its history, products, sales and service network, subsidiaries like Maruti Insurance and Maruti Finance, and services like Maruti True Value (used car marketplace) and Maruti Driving School. It also includes logos of Maruti Suzuki and its various divisions, acknowledges those who provided guidance and support, and declares that the report is the submitter's original work.
This document analyzes the South Korean credit card industry and Hyundai Card's position within it. It provides a brief history of the credit card industry in South Korea from 1969 to 2000, noting steady growth. It also shows that South Korea has a higher average number of cards issued per capita compared to other countries. The document discusses Hyundai Card's market share, ownership structure, products, marketing strategies including customer segmentation and promotions, and features that influence customer lifestyle. It proposes future strategies such as innovative product design and extending card usage.
WHY DID TATA NANO
Positioning, Branding, psychographic, Tata Nano.
SWOT Analysis
1. Strengths
2. What made the brand weak? Weaknesses
3. Threats in the SWOT analysis of Tata nano.
Factors & Failure
The Positioning Failure
Psychographic Factors
Conclusion
The much hyped Tata Nano couldn’t live up to any sales projection. Why has it not captivated the Indian masses as much as the Pundits and even Ratan Tata hoped it would? Poor product or poor marketing? Tata Nano is a classic case of poor brand positioning. Here are a few reasons why I believe that Tana Nano didn’t fare as well as expected and what we must learn from it.
This document summarizes research into consumer buying behaviour for cars in India. The research found that Maruti Suzuki has the strongest brand with 42% market share, followed by Hyundai. Nissan was identified as the weakest brand. Television advertisements were found to be the most effective promotional strategy. Consumer decisions are influenced most by brand name, reliability, and after-sales service. The recommendations include focusing on innovative advertising, improving technology, reasonable pricing, and enhancing after-sales service.
A project report on measurement of customer satisfaction level on tata indica...Babasab Patil
The document is a research report on measuring customer satisfaction with Tata Indica passenger cars. It provides background on the growth of the Indian automobile industry following economic reforms in 1991. The report focuses on measuring customer satisfaction with Tata Indica cars through surveys with 100 owners in Belgaum region. Key findings include that most owners have an income between 250,000-400,000 rupees and own diesel versions with AC and power steering. The report provides recommendations such as increasing awareness of different versions and improving vehicle maintenance to increase customer satisfaction.
Management research project Maruti SuzukiPramod Patil
This document appears to be a research report submitted for a postgraduate management program. It analyzes consumer preferences for Maruti Suzuki cars in India. The report includes an index, objectives of the study, research methodology used including sample size and data collection methods, data analysis and interpretation using statistical tools like frequency distribution, crosstabs, t-tests and ANOVA. The data analysis examines factors influencing consumer preference like fuel type, attributes valued in cars, dealer expectations and offers, service center usage, banks preferred for loans, views on brand ambassadors and price perceptions. The conclusions suggest areas for Maruti Suzuki to improve based on consumer feedback.
Kanishka Singh's report analyzes Yamaha Motor India's performance in the two-wheeler automobile industry. Yamaha aims to capture 10% of India's growing two-wheeler market share by expanding production capacity to 2.5 million units annually by 2023. However, Yamaha faces challenges including lack of innovation, ineffective marketing, high costs, and losing market share to competitors introducing more affordable vehicles. The report provides recommendations such as introducing budget models and improving after-sales service to help Yamaha achieve its market share goals.
Tata motors final project on consumer satisfaction.Joydip Roy
This document provides an overview of the sales and distribution systems of Tata Motors and Fiat in India. It discusses Tata Motors' dealership model, which the author studied as part of an internship. It also describes the automobile industry in India, major players, vehicle price segments, and trends in domestic sales. The author's research methods including conducting surveys of customers and potential customers.
Customer satisfaction on services provided by maruthi suzuki and tata motorsProjects Kart
A comparative stud on customer satisfaction with regards to services provided by Maruthi Suzuki India Pvt. Ltd. and Tata Motors. This project report has a detailed questionnaire to understand the customer satisfaction in Hassan, Karnataka. Visit http://www.projectskart.com/p/contact-us.html for more information.
This paper attempts to decode the impact of covid-19 on automotive customers’ purchase journey, discusses the ‘new normal’ expected to emerge for automotive oems and provides recommendations on how digital solutions will transform the traditional customer journey. See more: https://www2.deloitte.com/in/en/pages/strategy/articles/in-consulting-elevate-human-experience-automitve-customer.html
This document is a project report submitted by Mr. Jiten H Menghani to the University of Mumbai for his M.Com program in the academic year 2013-2014. The report focuses on customer relationship management practices at Maruti Suzuki in India. It includes sections on the history of the Indian automobile industry and Maruti Suzuki, an analysis of Maruti Suzuki's customers and competitors using tools like Porter's Five Forces, and a discussion of Maruti Suzuki's approaches to analytical, operational, and strategic customer relationship management. The goal of the report is to evaluate Maruti Suzuki's CRM strategies and practices.
The document discusses the Tata Nano car, which was launched in India to provide affordable transportation but received a lukewarm response. It summarizes the background of Tata Motors and the specifications of the Nano. While the Nano was anticipated to expand the car market, sales have been dismal due to it being seen as a "poor man's car". The paper aims to analyze why the positioning failed and provide recommendations to change the brand perception.
Maruti Udyog Ltd was established in 1981 as a joint venture between the Indian government and Suzuki Motor. It has been the top-selling car maker in India for over a decade. The company aims to modernize the Indian automobile industry and produce fuel-efficient vehicles. It has a strong customer relationship management program including various loyalty programs, financing options, and extensive customer service across India.
Analysis of Research in Consumer Behavior of Automobile Passenger Car CustomerGagan Gouda
This document summarizes research on consumer behavior for automobile passenger car customers in India. It discusses the different segments of the Indian car market, from small cars to luxury cars. The research aims to identify the key factors that influence customers' preferences for different car segments. It describes the car purchase decision process and how various consumer behaviors can affect preferences across segments. The findings can help car manufacturers better understand customer expectations and target their market offerings.
Customer satisfation among the automobile company maruti (1)rana rahul
This document is a summer training project report submitted by Rahul Rana for their MBA degree. It includes an introduction outlining the objectives of studying customer satisfaction of small cars, specifically Maruti Suzuki in Greater Noida. It also includes sections on company profile, research methodology, data analysis, findings, conclusion, limitations, and recommendations. The report aims to understand factors influencing car purchases and customer satisfaction levels.
Consumer behaviour towards Toyata projectfarhan2193
Toyota is a Japanese automotive manufacturer known for reliability and fuel efficiency. The document discusses a consumer behavior project conducted on Toyota owners in Delhi, India. It provides Toyota's company profile and details the objectives, scope, methodology, and findings of the project. Key findings include that Toyota Innova and Etios models were most popular, automatic transmission and petrol fuel types were preferred, reliability and brand image influenced purchase decisions, and safety and comfort features were priorities for owners.
This document discusses hatchback cars in India. It begins by defining hatchbacks and their popularity in India, noting that the Maruti 800 and Alto have been top sellers. It then reviews some of the most popular current hatchback models in India, including the Maruti Alto, Swift, and WagonR, as well as the Hyundai i10 and i20. Key factors influencing hatchback purchases are identified as price, fuel economy, space, comfort, and brand name. Maruti Suzuki is highlighted as the most trusted brand in India's hatchback market.
The document analyzes the Indian automobile hatchback market, which accounts for over 70% of passenger car sales. It divides the market into segments - A, B, and B+. The A segment focuses on entry-level cars priced under Rs. 3 lakh. The B segment sees more options and features in cars priced from Rs. 3-5 lakh. The premium B+ segment for cars over Rs. 5 lakh is growing due to more affluent buyers. Overall, the analysis suggests new hatchback launches focus on competitive pricing while delivering on efficiency, space, and value to succeed across the various segments.
The document analyzes the Indian automobile hatchback market segmented into A, B, and B+ segments based on price and features. It notes that the A-segment is dominated by Maruti Suzuki and Tata with their Alto and Nano models respectively, accounting for 25% of hatchback sales. The B-segment sees higher sales of 60,000 units monthly led by Hyundai's Santro and i10, while the B+ segment, catering to premium hatchbacks, sees most new launches and is where "all the action is". It recommends that new entrants focus on competitive pricing, fuel efficiency, and practicality to succeed across segments.
This document appears to be a summer training report submitted for a Master's degree program. It provides an introduction and overview of Maruti Suzuki India Limited, including its history, products, sales and service network, subsidiaries like Maruti Insurance and Maruti Finance, and services like Maruti True Value (used car marketplace) and Maruti Driving School. It also includes logos of Maruti Suzuki and its various divisions, acknowledges those who provided guidance and support, and declares that the report is the submitter's original work.
This document analyzes the South Korean credit card industry and Hyundai Card's position within it. It provides a brief history of the credit card industry in South Korea from 1969 to 2000, noting steady growth. It also shows that South Korea has a higher average number of cards issued per capita compared to other countries. The document discusses Hyundai Card's market share, ownership structure, products, marketing strategies including customer segmentation and promotions, and features that influence customer lifestyle. It proposes future strategies such as innovative product design and extending card usage.
WHY DID TATA NANO
Positioning, Branding, psychographic, Tata Nano.
SWOT Analysis
1. Strengths
2. What made the brand weak? Weaknesses
3. Threats in the SWOT analysis of Tata nano.
Factors & Failure
The Positioning Failure
Psychographic Factors
Conclusion
The much hyped Tata Nano couldn’t live up to any sales projection. Why has it not captivated the Indian masses as much as the Pundits and even Ratan Tata hoped it would? Poor product or poor marketing? Tata Nano is a classic case of poor brand positioning. Here are a few reasons why I believe that Tana Nano didn’t fare as well as expected and what we must learn from it.
Tata Motors is India's largest automobile company that was founded in 1945. In 2008, it acquired Jaguar Land Rover. Tata launched the Nano in 2008 as the most affordable car, but it failed due to being perceived as cheap and low quality. It caught fire which damaged perceptions. Tata repositioned the Nano in 2013 as a "smart city car" with improved features to change its image from a cheap car. The lessons are the importance of understanding consumer behavior and developing effective positioning strategies.
The document discusses reasons for the failure of the Tata Nano car in India, including reliability issues, a perception of poor safety, high running costs, a lack of trust in Tata cars, the lack of alternative fuel options, and very low resale value. It also discusses factors like an inadequate dealer network, ineffective advertising that did not create a sense of pride or excitement, and communication issues from Tata Motors. Suggestions to revive sales include offering diesel or hybrid options, repositioning the brand image, and marketing to commercial customers.
Tata Nano was envisioned as an affordable car for common Indian families but ultimately failed due to several factors. It was positioned as too cheap, lacking features, and suffered from initial quality issues. Perceptions of it as a low quality, low status vehicle hurt sales. Recommendations include better understanding customer wants, targeting younger buyers, expressing the value at different price points, repositioning the brand more positively, and improving after-sales support.
Tata Motors developed the Tata Nano to cater to the growing ultra-low-cost car segment in India and other markets. They observed a need for an affordable vehicle for the millions who could only previously afford motorcycles or used cars. Tata Motors launched an extensive communication plan to create awareness of the Nano and position it as the world's most affordable car priced at $2,500. Their plan focused on low-cost media like print and web advertising to communicate the Nano's low price, fuel efficiency, and safety within tight marketing budgets. Initial response was extremely positive with over 500,000 booking inquiries, showing the success of Tata Motor's communication strategy in reaching price-sensitive customers.
Tata Nano was launched in 2008 as India's $2500 car to make car ownership more accessible. However, it faced issues with design flaws and poor quality that hurt sales. Tata Motors worked to rebuild trust with expeditions showcasing the Nano's durability and owner diaries sharing experiences. Later campaigns targeted youth, emphasized rational benefits like fuel efficiency, and tied with entertainment brands. The current campaign offers customers a trip to see their Nanos being assembled to build excitement around the upgraded Nano GenX model. Through various campaigns over the years, Tata Motors has worked to transform the Nano's brand from an affordable people's car to one that appeals to youth.
1) Tata Nano is India's most affordable car launched by Tata Motors with a goal of providing affordable transportation.
2) The Nano faced many challenges including engineering difficulties in achieving its low price point, factory issues that led to relocating production, and initial quality problems.
3) While the Nano received much publicity for its low price, its marketing campaigns were not always successful and did not portray the car in a way that appealed to Indian prestige and status expectations.
Tata Nano was initially positioned as the world's most affordable car, targeting lower and middle income families in India. However, this price-based positioning strategy failed as lower prices in India are associated with lower quality. Issues like cars catching fire further damaged perceptions of Nano's quality. To revive the brand, Tata repositioned Nano with a focus on features rather than price, targeting it as a "smart city car." They improved quality, expanded distribution networks to smaller towns, and launched new promotional campaigns. This case study demonstrates the importance of developing effective positioning strategies and understanding customer behavior for long-term brand success in India's automobile market.
Tata Nano was initially positioned as the world's most affordable car, targeting lower and middle income families in India. However, this price-based positioning led Nano to be perceived as a "poor man's car" and issues like vehicle fires further damaged its reputation for quality. Tata later repositioned Nano with a focus on features, personalization options, and promoting it as a "smart city car" to move away from perceptions of low quality. The case study demonstrates the importance of developing an effective positioning strategy that considers customer perceptions beyond just price. It also shows how positioning can be detrimental if not properly planned and corrected when needed.
A project report on tata nano pre launch surveyProjects Kart
Ratan Tata, Chairman of Tata Group, envisioned producing an affordable car for the common people of India. After five years of overcoming financial and technical barriers, Tata Motors unveiled the Tata Nano in 2008, priced at $2,500. The Nano was developed to address India's growing middle class and provide safer transportation than the common motorcycles families used. Tata believed the Nano could spark increased automobile demand both in India by addressing more of the population, and globally if successful and affordable at scale. Details of the Nano's specifications and planned production are provided.
TATA NANO CASE STUDIES in Marketing Management.pptxDrSaiKumar2
Tata Nano was launched in 2009 as India's "People's Car" priced at Rs. 1 lakh, but it failed to meet customer expectations. While it satisfied functional needs, it did not fulfill emotional needs due to being perceived as the "cheapest car". This damaged its social status appeal. In contrast, Honda Activa was very successful by understanding customer needs, offering features tailored for middle-class transportation at a reasonable price through effective marketing and positioning.
Tata Nano is India's most affordable car, targeting lower and middle income families. It provides an alternative to scooters and motorcycles. While low cost of ownership is an opportunity, rising material prices and political issues in Singur posed initial threats. However, support from the Gujarat government helped establish a new plant. While Nano faces competition from other automakers, its unique value proposition as the lowest priced car has no direct competition currently. Strong distribution and after-sales service also provide advantages.
Tata nano-mba-542 nano in bangladesh nana business Abdullah Al Masud
launched in 2008, Abdul Matlub Ahmad, the chairman of the Nitol Niloy Group, Tata Motors Ltd's manufacturing partner in Bangladesh, had ordered four of them from the first series.
Now, he's back with a business proposal, which might revive Nano's future prospects.
"For us it's a milestone and I hope we can make a contribution to the country."
Ratan Tata
As per the promotion of the product is concerned Tata has not used any Advertising for promoting the TATA Nano.
Its promotion has gone all through by the people through “ Words Of Mouth”.
But now they are planning to have some Marketing before the car is distributed to the people.
The small cars may end up having some influence on ‘personal transport on hire’ and may perhaps push out three-wheeler scooters/autos etc.
Prof. K.Kumar
IIM, Bangalore
Tata Motors faced declining market share in passenger vehicles due to being perceived as a taxi brand. It launched various campaigns across different media platforms with separate agencies to change this perception and establish itself as a youthful, innovative brand. Key campaigns included #GetSetBolt for a digital launch, #MyCityMyZest Twitter campaign, and #FantasticoNameHunt to crowdsource a new name. Later campaigns like #MadeofGreat with Lionel Messi and #Fantastico's virtual reality experience boosted brand image. Through innovative campaigns, experiential marketing, and new models like Tiago and Hexa, Tata Motors was able to improve its passenger vehicle sales and turn around its brand perception.
The document provides details on the marketing strategy of the Tata Nano vehicle. It discusses the idea generation and history of Tata Motors, specifications and features of the Nano, its competitive pricing of 100,000 rupees, promotion through publicity and social media, distribution through dealerships, strengths like low price and weaknesses like small size, and post-purchase service plans. The conclusion is that the Nano has the potential to become not just India's future car but a global car if exported successfully.
The document discusses the marketing strategy of Tata Nano, a small and affordable car introduced by Tata Motors in 2008. It details the history and specifications of the Nano, as well as its pricing, promotion, distribution, SWOT analysis, and post-purchase service strategy. The goal of the Nano was to make car ownership possible for lower-income families in India by offering a very low price point of around $2,500.
This document provides information about Tata Motors, the Indian automaker, including its history, operations, and products. It discusses Tata's acquisition of other vehicle manufacturers, its presence in various global markets, and manufacturing locations in India. The document also examines Tata's launch of the Nano automobile in 2008 as an affordable option for the Indian market and considers how it may impact other vehicles in Tata's lineup or compete with alternatives like auto rickshaws. Various perspectives on the Nano are explored from the viewpoints of Tata, customers, and society.
Tata Nano: Consumer's Post Purchase Behavior CorporationIvan Giovanni
Tata Nano: Consumer's Post Purchase Behavior Corporation, disampaikan pada mata kuliah Marketing Management, Airlangga University, membahas teori disonansi pasca pembelian
Similar to Prateek Sharma_What did Nano do wrong. What can they do now. (20)
2. 2
Introduction
TATA Nano was a classic case of a product manager who chooses not to respect the aspirations
of his prospective consumers. A famous marketer once said “A man buys a car for what he
wants to be and buys a house based on what he is”. When Indian industrial giant Tata
launched the Nano, the hype was huge. Sleek and cute in buttercup yellow, its sticker price was
$2,000, making it the “world’s cheapest car”, as promised in 2006 by Mr Ratan Tata.
He said he wanted to get low-income Indian families who typically travel by scooter (families of
four, five, even six, piled on a single cycle, helmet-less) off their two-wheeler, as they are called
here, and into something safer. As a side benefit, he hoped the car could be produced in an
IKEA-esque flat pack and shipped to remote corners of the country, creating a business
opportunity for mechanics to assemble them.
It promised to revolutionize both its market – putting low-income consumers behind the wheel
– and car-making, through a process called “frugal engineering.” The Indian public clamored
with excitement; people lined up for hours at events to sit in a prototype. Auto companies
outside India watched with great anticipation, too: was this the future for emerging markets in
developing countries?
Two years later, the Nano is a cute, yellow disaster – not because there’s anything wrong with
the car, which remains something of an engineering triumph, but because of a series of
surprising blunders on the part of Tata.
What went wrong?
Missteps in everything from distribution, advertising, marketing and financing plans hobbled
the car from the start. There was a mis-match between what they wanted to position Nano and
what they actually did position it as.
3. 3
The Nano was marketed as the car for people who could barely afford a car. But in a market
where car purchases are hugely aspirational, nobody wants that car. People save for years for
their first vehicle. So if they drive a Nano home, the reaction from the kids would be, “What
have you brought, a compromise, a car that is almost a motorcycle?’ This was not the kind of
car people were dreaming of.
Politics:
The Nano faced two big problems early on. Its original production facility, in West
Bengal, got tangled up in messy politics with the state’s Marxist then-government, and
at the 11th hour the plant was shifted to Gujarat – so the company wasn’t able to meet
an early rush of orders and thereby, forego Consumer Innovativeness.
Safety:
Once cars were on the road, there were safety fears. A few early Nanos burst into
flames while being driven, and Tata didn’t mount the public relations offensive it should
have over those incidents.
In 2014 a Nano car was crashed for NCAP by ADAC in Germany. Despite Tata's claimthat
it was expecting 4 stars, the Nano actually achieved zero-star adult protection rating and
failed to meet even the most basic UN safety requirements.
Complacency:
Nano received a whopping 2, 00,000 bookings initially. Clearly, people were gravitating
towards Optimum Stimulation Level (OSL) from Actual Stimulation Level (ASL). Tata
became complacent and did not follow-up with a comprehensive advertising strategy to
keep the public interest going. Post the fire incident, Tata started advertising which was
not very effective as it seemed reactive and only augmented the negative publicity.
Marketing:
There was barely any print or television advertising to give the Nano a brand identity
beyond cheap. Tata marketed the Nano through showrooms in big cities, which meant
4. 4
that much of its target market in small cities and towns never saw one. Marketing
strategy does not operate in a vacuum. It failed to generate emotions and thereby, fire
incidents forced people to be in Cognitive state instead of Affect, which Tata Motors
would have liked.
Possibly, they were too much dependent on the buzz (Word of Mouth) created around
the car, besides the Brand value of Tata Motors.
Finance:
Although the car was cheap (about $2,500 once it finally went on sale), the company
failed to make it easy for the lowest earners to obtain financing – the Nano needed
below-market interest rates and fast onsite loans. Instead, as would-be buyers struggled
through the process of getting a bank loan based on their low-wage jobs, they realized
they could get a slightly larger loan, and perhaps buy a Maruti Swift, the lowest-price
vehicle from Tata’s main competitor, which has none of the stigma of being a poor
person’s car.
Domestic Economy:
A big hike in fuel prices and interest rates squashed all of India’s car market, including
Tata Nano. It must be noted that the Nano’s target customers were the most vulnerable
to those kinds of expense increases.
Distribution Strategy:
The distribution strategy failed to bridge the last mile to the consumer segment that
Tata Motor’s built this car for, due to paucity of large enough dealer network. The Nano
did not have a large enough dealer network in the rural areas and smaller towns where
the affordability branding was more likely to work. The lack of dealer networks meant
they could not capitalize on the initial enthusiasm and interest.
5. 5
Positioning:
The target customers for Tata Nano were lower and middle income families (A car for
the masses), who aspire to upgrade to 4- wheelers from being 2-wheeler users and since
many of such families stay away from purchasing 4- wheelers primarily due to the
affordability factor, Management at Tata Motors tried to focus on the price factor and
developed “Price Positioning Strategy” for Tata Nano. Tata Nano tried to position itself
as the most Affordable Car in the world. The former Chairman of Tata, Mr. Ratan Tata,
had envisioned Tata Nano to become a “People’s car.” The car was positioned as the
people’s car since it offers comfort and affordability to every person but inadvertently
Tata Nano got positioned as the “Poor Man’s Car” and “Cheap Car” and the impression
became almost impossible to de-anchor. Here, the focus on the price and the product
grew to such an extent that the consumer needs were ignored, giving birth to Marketing
Myopia.
Positioning is an ingredient of total strategy. Product, brand, price, promotion and
distribution must all be consistent with the positioning strategy. But Tata Nano’s
positioning strategy and communication tactics didn’t gel with each other. Tata Nano’s
distribution system was not also consistent with its positioning strategy .The Nano did
not have a large enough dealer network in the rural areas and smaller towns where the
positioning by price was more relevant. The paucity of dealer networks meant they
could not capitalize on the initial enthusiasmand interest. The target market knew how
to buy scooters but they didn’t know how to buy cars. In India the two processes are
completely different and it appears that many people were simply intimidated to go into
a car dealership. Tata doesn’t sell scooters and appears to have underestimated this
issue. The distribution strategy failed to bridge the last mile to the consumer segment
that Tata Motor’s built this car for. Lower income customers were apprehensive and
hesitant to walk into large Tata Motor’s showrooms.
While Nano was intended by the company for the lower-end belt who are price
conscious, instead of reaching out to the intended segment Tata Motor’s relied heavily
on non-conventional methods like social-media. They created a special Nano website
6. 6
where one could design their own Nano and play games; used social networking sites
such as Facebook and Orkut; leveraged blogs; and purchased online advertising. The
online medium was hardly the right way to sell to their target segment and the strategy
failed to create buzz around the car. The sales reflected this. Half of the Nano’s
purchased were second cars, clearly violating the positioning which sought to transition
people from two wheelers to four wheelers. Thus, the lack of proper communication to
the appropriate customer segment led to the downfall.
Moreover, use of metaphors in positioning strikes a chord with the market.
What can they do now?
The main inspiration of TATA Nano was the “Hum Do Hamare Do” concept.
The company should craft and execute different strategy towards target audience and
the positioning of the car must be changed.
We Indians, generally, try to derive the esteem from whatever we buy, or in other
words we show-off. Tata Nano was not the car which was seen as an esteemed vehicle
due to the misunderstood tag which was stuck to it as ‘Cheapest car’. Although, no
aspect of your behavior tends to be affected by personality, it does affect purchase and
consumption behavior.
People preferred TATA Nano as a second car, despite of their ability to pay for the costly
cars. In other words, people are postponing the purchase of Tata Nano waiting for their
first car. The target audiences of the company are the people who belong to lower
middle class and lower class. Lower middle and lower class still purchase the car based
on esteem need to improve their social status.
88% of the lower and lower middle class do not know driving and thus they are
comfortable riding the bike. Company must launch a marketing programme to teach
driving to the target audience (of course free, unlike Maruti). Once the target audience
know driving, it will be easier for the company to identify, anticipate and satisfy
customer requirements profitably.
7. 7
Most of the people in the target audience own a bike and it is not easy for them to
abandon the bike which costs half of the price of Tata Nano. Therefore, Company must
give them the exchange offer and offer good them resale price of bike.
Company focused on price factor, mainly, but failed to communicate the features, safety
and other benefits to the target market. Company must keep in mind that apart from
price, consumers are looking for many other aspects while buying a car as well.
Most of the target market likes the advertisement which is informative followed by
which show the safety. Currently, company has advertisement which brings pride which
is a bit unbelievable on the part of consumer, thus, it wasn’t liked by the target
consumer as well.
Thus, company must design the advertisement which combines the information and
safety.
Tata Motors must look beyond its current target audience (which comprises of males),
and should focus on including females (Specifically, urban) in their target audience.
As the car is perceived to be compatible and easy to drive by the female segment, it will
prove successful.
An automatic transmission by default - which will target women and senior citizens.
Honda scooters is the preferred choice of all those who don't want to be kicking bikes
into action. No reason why cars have to be more complicated. The Maruti-Suzuki Celerio
is an effort to rope in new car users. The Nano should target the same.
There is a difference in attitude between the prospects and the current users. Current
users are satisfied with the car, while prospect users have many uncertainties in mind.
Company must try to minimize this gap by including various innovative marketing
programmes. They can be ‘drive a car’, or ‘the Goodwill drive’ , or ‘Drive thru’, etc.
These slogans should be localized in the local regional language as you are targeting
those segments which may not understand English language.
Let the prospect user drive the car for a day, and then let him decide. Its highly possible
that such test drives will shorten the decision making process, and the target customer
8. 8
will become a customer. This is due to the fact that when we touch a product,
psychologically we get attached to it.
Indigenous Character of the car must be promoted. It became a weakness for the car
earlier as we Indians prefer cars or anything, which is ‘not so Indian’, but ‘international’.
May be Tata salt can teach something to Tata Nano. Thus, the car can be promoted as
‘Desh ki Car’ to let the emotion come into the play and the Affect. Eventually, it will find
mass acceptance after its image gets a facelift.
Design the car in attractive ‘new age graphics’ to find appeal among the college youth
segment. College-goers now using bikes may, conceivably, buy a car that looked like the
VW Beetle, even if it performed like a - well – Nano, but re-packaging the brand would
make it a hedonic product. Moreover, the company needs to tailor its marketing
communication according to the customer segment, for one size does not fit all
(according to Elaboration Likelihood Model)
For Attitude goes for long-term and Attitude shapes behavior, so company needs to
shape the underlying attitude as well.
Company must adopt the Fast-Fashion Approach here, by launching new graphics cars
every year, to keep up the interest of this youth and ‘young at heart’ segment.
9. 9
Besides the basic low priced models, expensive versions of this car must also be
launched with newer features, as mentioned in the above point. In other words, one
which targets purely Utilitarian and the other, Hedonic aspects of the behavior but with
different names. Thus, price game can be played for the hedonic model (targeted at
people who can afford a bit expensive models). It can be highly competitive in the 2-3.5L
range.
Moreover in the long run, brand working on the hedonic aspect will rise more than the
utilitarian only thing. This will raise Brand Loyalty as well.
A name change. The name Nano was a good one in 2008; today it has the looks of a
loser and has become irrelevant. It is not easy to reposition a loser with cosmetic
changes and an old name. A new name will help Tata Motors reinvent the platform.
For Example: Tata Serata, Tata Squadra (Italian names for Party), they rhyme and are
easy to speak for the natives. They also sound international.
Limited edition cars must be launched with transparent overhead part and the
continuous uninterrupted window (what it should look from the outside) of the car, but
priced a bit higher. Consumer behavior is open to managerial influence. Make the
affluent fall for it by calling it ‘Future on The Road’. This will help it become the first car
of choice for the affluent, and not the second or third car, as the Hedonic quotient of
the car will increase due to brand packaging. Here, the scarcity Effect will come in handy
for the entire Tata Serata and Tata Squadra line(name changed from Tata Nano).
Hiring ace driver with mass appeal in India like Narain Karthikeyan, who has an
understandable authority; Virat Kohli who himself owns a number of cars, is aggressive,
popular cricketer, a winner and passionate driver can drive up the sales for the company
if the company uses this expert bias strategy.
Improve the search quality of Tata Motors by improving brand Equity.
Once the sales pick up, Social Proof will take care of the rest for in India this works the
best.
10. 10
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