Never back down….

Tata Motors, not many have heard this name, but this company in India owns the Automobile giant’s Land Rover and Jaguar and they also manufacture the world’s cheapest car “Nano.”  Tata Nano was launched in the year 2008 by the then chairman Ratan Tata; it was his dream project “to make the cheapest car in the world” a car costing less than $2500. For a country with a large number of middle class people this price tag was an irresistible offer.

The unexpected

Segmenting, Targeting and positing gone wrong

Tata was expecting a huge sales for their dream project various rating agencies like the CRISIL expected a increase of 65% in the expansion of Indian car market because of the various reviews, but the reality was very different sales was not as predicted by the company. Tata wanted to target the customers who have never owned a car before or who have never considered getting a car. Their prospect customers was the people who ride in motorcycle or people who wish to buy a second hand car’s because a new car is expensive for them. The TV ads made in a similar view:-

case-study-of-marketing-the-nissan-micra-and-tata-nano-14-638

According to Kapferer For every brand positioning remains inevitable if it wants to succeed in the market( Kapferer, 1997). Although the title world’s cheapest car was not used in absolute meaning but was given to emphasises the cost effectiveness, but  this title gave a feeling that Tata Nano is a poor man’s car. The car being segmented into a car only for the middle class adversely effected the sales, after all who wants to see them self as a “poor man” According to Kotler Positioning is the act of designing the company‘s offering and image to occupy a distinct place in the mind of the target market. (Kotler,2005). The image what Nano occupied in the minds of its prospect customers was that if you own a Nano you are seen as a poor man.

 Adding fuel to fire  

Week marketing was not the only problem Tata motors had to face, there were numerous incidences where the car caught fire due to faulty equipment and poor design. This incidents made things worse for the company news reports from various part of the country was flowing in about the various problems and complaints about the car soon a news spread that the car was not safe enough.

Tata-Nano-catches-fire

 Rising from the ashes with twist  

What everyone thought was the end of the Nano was just the begging for a whole new car and whole new marketing strategy. The idea of targeting the middle class family’s changed, instead the company began to target the youth. The company was now trying to bring in youthfulness in the Nano the new Nano was given twist and was renamed as Nano Twist. The company changed some aspects of the design  gave a fresh look to the car making it more attractive for the young customers rather than positing it was a car for the middle class family. New additions like the alloy wheels, new body graphics; sporty looks transformed the car for a different segment of buys. New TV ads came in which targeted the young Indian customers. The on ground promotions was done where there was more young people, like in Universities, shopping malls, although the price of the car increased, the company saw a increase in sales because of the new marketing strategies. Understanding the market Tata motors have transformed the poor man’s car to the young man’s car by a carefully positing the Nano into the rite segment. new tv ad 

The all new  Nano Twist

Tata-Nano-Twist-Active-Front

Reference

1)Kapferer, J. (1997). Strategic brand management. London: Kogan Page.

2)Tapp, A. (2005). Principles of direct and database marketing. Harlow, England: Financial Times/Prentice Hall.

http://www.tatamotors.com/

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Never back down….

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