Case Study Of Tata Nano

1469 Words 6 Pages

Tata Motors came out with the World’s least expensive car Tata Nano in 2008. The making of this compact vehicle involved a lot of innovation and the pricing, sourcing, distribution and marketing strategies of Tata Motors also had to be revamped only for this particular car. The major target market for Tata Nano was the low income individuals and families, the individuals who want to move from a two-wheeler to a four-wheeler and the medium and high income families looking out for an inexpensive second vehicle. The pricing strategy for the vehicle was penetration pricing. The sourcing strategy had some changes over the years while the major distribution channel model was the hub and spoke model and an unconventional
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Since after the design is made, many costs become fixed, Tata Motors worked in collaboration with the suppliers very early. Tata brought in suppliers such as Bosch and Delphi to be full partners in the Nano innovation by developing low cost components. The article also describes the extended use of Tata’s e-sourcing strategies and competitive online bidding methods with few suppliers, improving supplier development and capacity. Tata used a mix of sourcing automation and external sourcing so as to reduce direct material …show more content…
The study aims at understanding the application of Lean Applied Product Development taking into example the Product Development of Tata Nano. Study of strategy to target Bottom of Pyramid Market with the help of Lean applied product development to achieve cost effectiveness and successful product characteristics.

Frugal Innovation: A global network’s perspective
- Rajnish Tiwari and Cornelius Herstatt,
The article explains the framework of frugal innovative developments from global perspective taking into example the Tata Nano. The extract explains that how Tata Nano achieved the feat to become the world’s cheapest car – from management decision to go with ‘concurrent engineering in real time’ and asking their suppliers to develop innovative systems without any proper set of specifications and having their production done in the vicinity to chip off additional costs is shown.

A case study of frugal innovation in lead markets is the key to success in national markets w.r.t. ‘Tata Nano’
- Prof. (Dr.) O. P. Haldar & Prof. K. Ujwala Kiran,

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