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Tata nano 2
- 1. A CASE TATA NANO “Anamazing invention that didn't turn out to be a innovation”
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- 3. Mission and VisionStatements
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- 5. CHALLENGES FACED OPPOSITION FROMFARMERS ▸ TATA group initiated the construction of the Singur plant on 21 January 2007. ▸ The project faced massive opposition from displaced farmers. ▸ The protests were supported by West Bengal’s opposition party. ▸ After an year and half of negotiations, TATA group finally announced on 3rd October 2008, that they were pulling out of Singur due to “political unrest and agitation”. ▸ TATA said that the financial loss due to relocation ranges somewhere between Rs. 400cr and Rs. 1,400cr.
- 6. CHALLENGES FACED “CHEAP” TAG:ISSUES IN POSITIONING ▸ Instead on focussing on being good, TATA group marketed the car as being the 'cheapest'. ▸ This may have worked in other countries but backfired massively in India due to the intense perception of class position. ▸ It turned out that the lower class preferred to buy second hand higher-end cars than to buy a Nano, which would mark them as poor. ▸ Due to the low price there were concerns that the cars would be of a cheaper quality.
- 7. CHALLENGES FACED QUALITY CONCERNS ▸Due to the low price there were concerns that the cars would be of a cheaper quality. ▸ There were several fire incidents related to Nano, though the company denied that they were connected to car’s design or parts. ▸ In 2014, a Nano was crashed by ADAC in Germany. Despite Tata’s claim that it was expecting 4 stars, Nano actually got zero stars for adult protection and didn't even meet basic UN safety requirements.
- 8. CHALLENGES FACED ISOLATION OFTARGET MARKET AND OTHER ISSUES ▸Cars are sold through dealers, and Tata’s dealer network was almost entirely urban, and they didn't have a way to reach out to small towns and villages. ▸The target market knew how to buy a scooter but didn't know how to buy a car. ▸Many people were simply intimidated to go to a car dealership. ▸Between 2003, when the development started and mid-2008 when the production began the prices of raw materials went up by 13-23%. Source: http://deniseleeyohn.com/bites/what-went-wrong-with-tata-motors-nano/
- 9. MARKETING RESPONSE ▸The TATANano had drawn over 2.03 lakh fully paid bookings amounting to nearly Rs. 2,500cr. ▸Company officials say 70-80% of initial customers already had a car, some even had two. ▸The target customers felt shy to walk into the showrooms. ▸The Maruti Alto sold 3.93 lakh units, while over 71,000 Nanos have been sold since the latter was launched in July 2009. ▸The nano was to sell on ‘demand pull’, but now its plagued with poor image and quality issues. ▸Dream of becoming number 1 entry -level hatchback shattered. Source: http://www.nytimes.com/2010/12/10/business/global/10tata.html?_r=3&src=me&ref=business& http://economictimes.indiatimes.com/news/news-by- industry/auto/automobiles/How-Tata- Nano-hit- a- big-bump- in-India/articleshow/7032762.cms
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- 12. RECENT IMPROVEMENTS ONNANO ▸‘Place’: From grandiose showrooms to low key access points, distribution was restructured, giving more access to the targeted customer segments. ▸‘Price’: Negotiations with NBFCs, public sector banks, local cooperative banks were made to ensure attractive interest rates and financing options for Nano customers. ▸‘Product’ : To enhance the safety features, a retro-fitting exercise was undertaken, which included addition of fuse and non-inflammable cover to all cars sold plus manufactured. ▸‘Promotion’: The initial setback caused due to cheap car image was worked upon and car was rebranded as the most famous hatchback, fuel efficient, good performance and pleasant interior. Source - http://articles.economictimes.indiatimes.com/2010-12-03/news/27627574_1_nano-production-tata-nano-sanand Since there were problems regarding the positioning of Nano, major changes were undertaken in terms of the company to revive the product. Changes explained based on the 4 P’s of marketing: