December 14,2014
Dr. Fairbairn
MBA 652
Tata Nano: The People’s Car
I. Key Marketing
While the Tata Nano may have been touted as a game changer in the auto industry in India as the least expensive vehicle a “car for everyone” it lacked a clear pricing strategy, market segmentation strategy, and an import-export strategy.
II. Situation Analysis
5 c’s
Company: A conglomerate that has international ties to engineering, energy, information systems, materials, services, consumer products, and chemicals. Tata is the 6th largest commercial vehicle manufacturer in the world. They own Jaguar and Land Rover. They are among one of India’s largest automobile companies. Increase in material cost by 10%. Margin in Nano is around …show more content…
Based upon the production delays and reduction of production this affects their brand image. The consumers also consider locations and levels of service as key components.
Promotion: While Tata Motors already has a brand image created there is no mention of a specific strategy in place to reach customers through commercials, digital marketing, or other specific platforms to establish a relationship with their consumers. There are of course news articles about “the cheapest car in the world” however there are no mention of public relation strategies to educate consumers on the benefits of the Nano.
Price: The Nano is priced at $2,500 USD the least expensive vehicle in the automotive industry. Price association has an unreasonable side for example something that is expensive is usually associated with something that is good so something that is inexpensive has the chance of being associated as something that is bad or …show more content…
They are looking to the middle class however they are forgetting about the lower class as well who are probably more inclined to purchase the Nano. As Michael Porter mentioned they must develop a strategy. Outsourcing production or to internationalizing unfortunately is not a strategy those are steps to get where you want to be but they are not strategies. They must ask themselves what unique position will I be able to develop? They must develop an advantage and be able to sustain their position over the long term in order to be competitive and successful in their market. They have to consider a strategy that positions the vehicle a certain way for rural consumers compared to their urban counterparts. If they are unable to position the vehicle properly there is a chance they can lose both markets and push the affordability and convenience instead of performance and the efficiency of the