Case Study Tata Nano

A brand creates an image for a product used to attract consumers to a strong established label. Successful branding leads to sales and a positive eye by customers. Tata Motors went from the leading automobile manufacturer and the number 3 passenger vehicle brand in India to a decrease in estimated sales and a deteriorating brand. Multiple factors are taken into account with this decline including the economy, competition increasing, external factors, and the brand. Many of these factors can be tracked to make predictions on how they will affect a company but cannot be fully controlled. The leading problem Tata Motors needs to focus on is the “People’s Car” Tata Nano brand. The brand can be put in the hands of the company as they research …show more content…
First, to solve the brand decreasing in 2013 and 2014 Tata Motors should design a Nano scooter to build a strong brand. Building the brand with a scooter will allow the consumers to trust Tata Motors as a company before trying to sell a car. If a company has outstanding brand recognition consumers are more likely to keep buying that brand. Second, Tata Motors needs to identify the social norms for India’s transportation. A five-person family can fit on one scooter to move from place to place. The Tata Nano needs to have similar characteristics to adapt to the social norms. A few norms to keep up with will be having spaces for people to stand on the back of the car, have a horn, and allow a full family to fit in the car. Lastly, the “People’s Car” can be terminated all together to allow Tata Motors to focus on products that have been successes. Taking this approach would allow Tata Motors to direct their efforts to the Jaguar. The Jaguar is 88% of the total automotive revenue and is Tata Motors leading car that targets a luxury industry. The Tata Nano’s target market is the middle class. Eliminating the Tata Nano allows the company to focus on one target market and narrow their overall …show more content…
The next step would be for Tata Motors to look at the flaws in the Tata Nano car and see what customers liked and disliked. They will need to come up with a new version of the vehicle while taking consumers eye into account. Making the car look similar in color and style to the scooter will allow the consumers to recognize the brand anywhere in the streets.
The predicted sales for the Tata Nano never set out to be what the company expected. Tata Motors needed at least 200,000 Tata Nano’s sold a year to have the 400 million dollar investment be worth their while. The company never sold even half of their goal a year and on top of that the brand was dwindling. Focusing on the scooter will eliminate the decline of lost profits and start gaining some. The sales and revenues will increase which will correlate with the well-established brand. If consumers are buying the cars they must like something about it. The scooter will take over some of the market share in the