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  • Topic: Tata Nano, Automobile, Automobile industry in India
  • Pages : 10 (3298 words )
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  • Published : January 21, 2013
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ISBN - 978-93-81583-46-3 

A Dream Shattered or Still a Big Potential: A Case Study of Tata Nano Dr. K.G. Arora1, Anju Arora2 1 Director, 2Assistant Professor 1 S.D. Institute of Professional Studies, Muzaffarnagar 2 S. D. College of Management Studies, Muzaffarnagar 1 kgarora@rediffmail.com, 2anjubathlaarora@gmail.com

National Conference on Emerging Challenges for Sustainable Business 2012 1086 

A Dream Shattered or Still A Big Potential: A Case Study of Tata Nano

A DREAM SHATTERED OR STILL A BIG POTENTIAL: A CASE STUDY OF TATA NANO Abstract Keeping the potential of Indian Automobile Industry in mind, a few years back, around 2006 Ratan Tata conceived the idea of a tiny car with even a tinier price tag for rapidly growing middle class segment. Tata Nano was seen as a triumph of home grown engineering ; as making a product which encapsulates the dreams of millions of Indians with all the elements of mix i.e. safety, engineering, design, efficiency, style at a price tag of one lakh was in itself a challenge. The intense media scrutiny about the few cases of Nano catching fire brought a remarkable dent in Nano sales and shattered the customers’ confidence in car. Since then Nano is struggling hard to regain its strong image in the eyes of its customers as still the huge potential of middle segment is unexplored.

The discussion arises about the turnaround strategies of Nano keeping in view its initial launch success, a few quality failures and distorted perceptions in the minds of its customers. This discussion will further add to the design of strategies for future new products which are well strategized for success with clear and defined conceivable about the costs, and market segments but fail due to a few small but significant mistakes.

Keywords: Product Development,, USP (unique selling preposition), Buzz marketing, Communication Complacency, Strategic Repositioning, Resurrection.

*This case study is developed during the resurrection phase of Tata Nano in March 2012 for classroom discussion as a perfect illustration for analyzing various aspects in the launch of an innovative product,,its market acceptance , Changing people perceptions etc.

National Conference on Emerging Challenges for Sustainable Business 2012 1087

A Dream Shattered or Still A Big Potential: A Case Study of Tata Nano

Introduction
Just a few months back, India overtook Brazil as the sixth largest passenger vehicle manufacturer in the world (Wikipedia Automobile industry). This proves the fact that the Indian Automobile Industry is moving at a fast pace. India is a growing market for Hatchbacks, Sedans, SUVs MUVs, Crossovers and MPVs. Among these small cars have emerged as a clear winner. In fact the country has become a leading centre in producing small cars. Keeping this potential of Indian Automobile Industry in mind , a few years back, around 2006 Ratan Tata conceived the idea of a tiny car with even a tinier price tag for rapidly growing middle class segment. Tata Nano achieved instant success when it was introduced as world’s cheapest car in the year 2009. Tata Nano was seen as a triumph of home grown engineering ; as making a product which encapsulates the dreams of millions of Indians with all the elements of mix i.e. safety, engineering, design, efficiency, style at a price tag of one lakh was in itself a challenge. And Tata’s seemed to fulfill all the promises to its customers by offering Nano. Majority of Indian population belong to middle class, when it comes to purchasing cars they look for the affordable vehicles. Few studies related to consumer buying behavior show that if an individual belonging to middle class wants to own a car then he can easily shell out `1 lac to `1.5 lakh. Thus, while buying a car, price tag becomes a prime factor. Though pricing is the prime factor, performance, style and durability also matter. So, Nano essentially being a dream project for Tatas, satisfied very competently all the...
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