Tata Nano in India
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Positioning the Tata Nano (A) and (B) This case deals with the positioning of the Tata Nano - for its launch and after its launch - , a new version of ultra-low-cost cars produced by Tata Motors Ltd. for the India’s market. The Tata Nano aimed to revolutionize the India’s market. First, the goal of the Tata Nano was to be the smallest in order to be maneuverable, as the streets in India were extremely small and unsafe. At the same time, the Tata Nano had to be the most affordable car in India, at a price of Rs. 1 lakh, in order to allow everyone to afford this car and more particularly those who could not afford a car before. To finish, as Tata Motors Ltd aimed to improve the quality of life of Indian people and so, Tata Motors Ltd. also paid attention to the quality of its new car. In other words, the Tata Nano was going to be the smallest and most affordable car in India, without compromising quality. Before the launch of the Tata Nano, Tata Motors Ltd tried to determine the best positioning for its new cars but there were too many choices. The first main choice was to position the Tata Nano as a means of family transport safer and more comfortable alternative to motorbikes. Besides, Tata Motors Ltd thought that positioning the Tata Nano as the “world’s cheapest car” could also appeal consumers to car ownership. Another option was to focus on a specific segment or usage situation, attracting thanks to the Tata Nano’s styling and maneuverability. In other words, the first question to answer is: How the Tata Nano should be positioned for its launch? In the second part of the case, we can see that the Tata Nano finally didn’t really achieve its objectives. Indeed, 80% of the bookings were car owners and only 20% were two-wheelers owners. Besides, the Tata Nano finally was used by the wife or a college student in the household. Moreover, some consumers stayed skeptical and declared that they preferred to pay
Positioning the Tata Nano (A) and (B) This case deals with the positioning of the Tata Nano - for its launch and after its launch - , a new version of ultra-low-cost cars produced by Tata Motors Ltd. for the India’s market. The Tata Nano aimed to revolutionize the India’s market. First, the goal of the Tata Nano was to be the smallest in order to be maneuverable, as the streets in India were extremely small and unsafe. At the same time, the Tata Nano had to be the most affordable car in India, at a price of Rs. 1 lakh, in order to allow everyone to afford this car and more particularly those who could not afford a car before. To finish, as Tata Motors Ltd aimed to improve the quality of life of Indian people and so, Tata Motors Ltd. also paid attention to the quality of its new car. In other words, the Tata Nano was going to be the smallest and most affordable car in India, without compromising quality. Before the launch of the Tata Nano, Tata Motors Ltd tried to determine the best positioning for its new cars but there were too many choices. The first main choice was to position the Tata Nano as a means of family transport safer and more comfortable alternative to motorbikes. Besides, Tata Motors Ltd thought that positioning the Tata Nano as the “world’s cheapest car” could also appeal consumers to car ownership. Another option was to focus on a specific segment or usage situation, attracting thanks to the Tata Nano’s styling and maneuverability. In other words, the first question to answer is: How the Tata Nano should be positioned for its launch? In the second part of the case, we can see that the Tata Nano finally didn’t really achieve its objectives. Indeed, 80% of the bookings were car owners and only 20% were two-wheelers owners. Besides, the Tata Nano finally was used by the wife or a college student in the household. Moreover, some consumers stayed skeptical and declared that they preferred to pay