Tata Nano SALES and DISTRIBUTION STRATEGY

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What are major challenges being faced by TATA NANO in its sales and distribution and how can it overcome them.

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Tata Nano SALES and DISTRIBUTION STRATEGY

  1. 1. TATA NANOSALES and DISTRIBUTION STRATEGY
  2. 2. DISTRIBUTION TATA NANO is using Hub and Spoke Model for distributionTATA has many C&F Agents (Collects Nano from hubs and distribute it across nation)
  3. 3. TATA NANO DISTRIBUTION MODELHub and Spoke Model
  4. 4. PRESENT ISSUES WITH DISTRIBUTION STRATEGY While the Nano seemed tailor-made for rural drivers, Tata only has dealers in major cities.  Lack of dealers in the target market i.e semi urban cities and rural areas. While the Nano seemed tailor-made for rural drivers, Tata only has dealers in major cities. The car’s reputation was further damaged when five of the first 30,000 cars had engine fires. Although no one was hurt in these instances, two of the cars burnt to the ground. The final nail in the coffin is the price: Rising material costs pushed the car’s price up to Rs. 1.5 lakh the same as a used Maruti 800. Even without the social stigma, this price left many people wondering why they would choose to buy a car that didn’t even have a trunk
  5. 5. TARGET SEGMENT
  6. 6. RECOMMENDATIONS • Setting up exclusive showrooms for NANO Reinvent • Developing Specialized Logistics the Facilities by collaboration with Specialized logistics providersdistribution • Should Move from full range dealership to Product Based Dealership strategy • Financing better facilities like Tata Finance
  7. 7. RECOMMENDATIONS Reinvent • Dedicated Nano kiosks and Mobile display units, the company also can step up its drive the through the hinterlands to spruce sales. • Association with Retail Outlets like Vishal Megadistribution Mart, Shoppers Shop, Pantloon etc. (Booking facilities, with promotion schemes like ‘Win Silver strategy Coin’)

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