Tata Nano Case Analysis
Ratan Tata, chairman of Tata Motors Ltd., hoped to raise the status of Middle class families in India by offering the Tata Nano. Expectations were increasing amongst the customers regarding the product features and its efficiency. Competitors were eagerly waiting for its arrival to find out what they were going to be up against. It had strong and convincing features and was actually a good product. Unfortunately there were too many strategic marketing problems that kept it from being as big as they thought it was going to be. We will explain the problems it met and showcase some alternative solutions that could be implemented.
Strategic Marketing Problems
Tata Nano tried to position itself in the two-wheeler
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Because Tata Motors stressed the insanely low cost of its Nano car, it became eminent that it would compete with two-wheel motorbikes. Since theses two-wheelers were so maneuverable, they appealed greatly to college students. One possible action would be to create an ad campaign that would specifically target college students to take them away from these bikes. The Nano could also be equipped with specific features for these students. Another possibility would be to advertise a more organized, saner way of transportation. Play up a utility angle with the Nano. With all of the motorbikes on the road in India, traffic can be chaotic and confusing. With more people driving cars (or mini cars) traffic would be much neater. Finally, in order to compete with motorbikes, Tata Motors should stress fuel efficiency and low maintenance costs of the Nano. They should put as much emphasis on this as they do the price of the car. People choose motorbikes for these two reasons but they now need to be their two reasons for choosing the Nano. In the event of production delays, the company simply needed to plan the location of their plant much more carefully. Instead of focusing solely on a location that best facilitates distribution, economic factors of building in that location need to be taken into consideration. The fact that their plant was shut down due to farmers protesting is ridiculous, especially when it comes