Case Study For Tata Nano

Need for Tata Nano

Tata Nano is Ratan Tata’s brain child. He had a vision for India. A car that can be driven by the general masses on the Indian roads. He took notice to the everyday story on the Indian roads where there are three-four family members on a scooter with a kid standing in the front, the guy driving and his wife sitting side saddle holding a little kid. With the conditions in India, you are always careful about the safety and have a precaution against slip and fall. During the monsoons it is even worse, you see families going on scooters in the rain. The wife is holding the umbrella and under terrible conditions the husband is driving through the winds. It is not that they do not care for their children or they do not give importance

Marketing failure

When we talk about marketing, we can only think about Apple. But there are many products which have failed only due to their marketing strategies. Considering the engineering marvel that Nano was, it is really hard to believe for a product like that to fail in the market unless you are told the wrong things about it.

Tata Nano was exclusively marketed as a cheap car. A car which can be afforded even by the poor or the lower middle class. There is nothing wrong about that. Everyone, especially Indians, like to have things at cheaper price. Tata Nano fit the bill perfectly, but it still failed.

Automobiles are high involvement products. Customers tend to ponder long before buying a vehicle. In such situations all the aspects of the car are measured, compared and tallied to find the best product that will fit with the lifestyle of the consumer. In such high involvement products initial awareness does not play of much importance. Even though the Tatas were a major player in the automobile industry and the most trusted brand in India, consumers were wanting to look at the product and analyse before

Tata Nano was launched in 2009 with a launch ad that showcased many features of the car. Nano was shown as a family car which is fast, sturdy and big. You see a small girl waiting in expectation of a Nano. What the ad said and what was seen by the consumers was completely different. The car was not big and it did not look sturdy enough to handle the tough terrain. The customers of Tata felt cheated. Nano did not stand for whatever was being shown in the ad. The ad showcased a tier 2 city with bad road conditions. With the product that they had and the city fuel efficiency that they so much focused on there was a complete mismatch and product became confusing in the minds of the