3 RESEARCH OBJECTIVES The Tata Nano is one of the most puzzling products that were introduced in the Indian market. Even though the cost of the car was low, it was still not a successful product in the market. This research tries to find out the cause of this paradox. One of the objectives of the research is to understand and find out the reasons for the failure of Tata Nano. The research will try to answer the question if Nano was a marketing strategy failure or a product design failure.
Introduction “I saw families ridding around on scooters with kids standing up and mother carrying a baby and sitting Pillion and decided to do something about. It started as an quest for an affordable transportation solutions.” – Ratan Tata (Source – Business Standard) In the year 2003 at the Geneva motor show, Ratan Tata was interviewed by the Financial Times, Tata talked about future product as an affordable car, the low cost car for the developing world which would meet the needs of the developing world. When quizzed about the price, Tata ended up saying $2500, at that time Rupees 1 lakh. The next day it was in the Financial Times headline. This is how the concept of Tata Nano car came into existence.
The Tata Group has business in seven sectors with 98 companies and Tata Motors is a company belonging to Tata Group. In 2008, Tata Motors launched the Nano, the cheapest car in the world. Apart from selling in domestic market, Tata Motors has ambition to export Nano to international markets such as Europe, Africa, America, etc. At that moment, Tata motors has some competitive advantages such as cost advantages (labour cost, production cost). In addition, local talent research staff and engineers as well as favourable government policies and regulation also can be considered as competitive advantages for Tata Nano.
CASE STUDY 4 Tata Nano: The people’s car Mayank Singh Mudgal Ph11B0005 3rd March 2015 Introduction This is the fourth report for the course ED5317: Strategies for Managing Innovation. The report requires us to study the case by INSEAD titled “Tata Nano: The people’s car that promises to reconstruct the Automobile Industry”. The following questions will be answered: • What was the thinking behind Nano’s inception? • What were the innovations involved in the design of the car? • What were the challenges faced by Tata in the car’s launch?
Tata motors have gone from a sheen losing family business to a global profitable brand. In April 2012 share price of Tata motors surged 90 % as compared to 10 % increase in BSE Reasons for turnaround At the beginning when TATA acquired JLR, world was entering recession and the worst recession of them all. There was a bad sentiment everywhere. Also, JLR being a British brand, the deal was not very well perceived due to the coming Indian ownership and the fears of outsourcing of jobs, technology and the brand to India. But that was 2008 and today JLR is contributing 50% of the overall profits of TATA Motors.
1. Introduction The objective of this research is to discuss the feasibility of the Tata NANO to enter the Chinese market through the present situation of in-depth investigation and study Chinese low-end car consumption market, combined with the study of "Multi-National Corporation management" and knowledge of international marketing. Thus the company can formulate specific and feasible marketing strategy, trying to open the Chinese market. 2. Company background The NANO is India’s Tata Group's latest car, which is recognized as world's cheapest car.
On the other hand, Tata was becoming stronger and was looking for an international brand which would make it easy for it to get into the international market since they had received excellent growth in India. When Ford Motors put Jaguar and Land Rover out for sale, Tata Motors saw an opportunity which would help it realize its growth ambition since the two luxury passenger vehicles were well established in premium passenger vehicles market. It was easier to manage such a brand than manage a new brand coming from India, hence Tata pursued the
Thus If the NANO fails Tata motors will not exit but be in a state to slow production and manufacturing facility can be used for spare parts modification of other new variants of passenger vehicles. Amount of Fixed costs-Automobiles industry experiencing a rise in competition and hence product quality ,service centers etc. needs to be provide which is extra costs that incurs, to maintain low cost, companies consistently has to make manufacturing improvements to keep the business competitive. This requires extra funding which tends to decrease companies profit margins as the cost of production gradually increases. As Nano being the only car of such limited pricing in the passenger vehicle segment it does not have a competitor and hence play a monopoly in the
TATA MOTORS Tata Motors Limited had a consolidated revenues of rupees 2,32,834 crores making it the largest automobile company in the Indian market. Tata Motors is among the top 3 manufacturers in the passenger vehicle segment while in the commercial vehicle segment, Tata motors have been able to sustain their number one position for a long time. It has won a lot of awards for its products in the commercial vehicle segment and is also accredited for the production of top vehicles in the passenger segment in the compact, mid-size and utility vehicle segment. It’s most notable products are Tata Nano, Tata Indica and Indigo and Tata Safari. It is also the second largest bus manufacturer in the world and also supplies CNG buses to the Delhi Transportation Corporation.