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Presented By:
Shabid Ashraf Abhishek Sharma Shikha Mathur Neha Dagur Ankita Singh
History of NANO
In 2003 the Tata company began development of car with four wheels designed to replace two-wheeled vehicles. Commercial launch of the Nano model for the Indian market took place in early 2011 , and received high exposure by the international media. Preliminary market researches conducted before launching the new international model anticipated a great commercial success and one of the research institutes in India predicted that the Nano will control about 65% of the Indian market.
Use of diesel
India gasoline subsidized by the state, there are subsidies of 50% of its value in the market. The engineers designed two models of Nano: gasoline and diesel. The vehicle that designed for the larger segment of the Indian market, designed to operate on diesel and therefore the cost of using it rise above of what the target costumers could afford.
Customer Model
Tata made two miss-steps here. First, the company designed for what it thought its customers should have, instead of figuring out what they really wanted. And second, it didnt understand the cultural drivers of customers brand perceptions.
Marketing Lesson
They dont call car a luxury item for nothing. People check long term benefits rather than short term affordability. Facts need to spread faster than rumours. Tall claims need to be backed with taller expectations.
Conclusion
Tata's business model fits to push type model, mass production. According to this model the sequence is: design-make-sell. Tata failed at the design stage. Selling poorly at home and with exports drying up, the Nano has become a cautionary tale of misplaced ambitions and a drag on sales and profit at Tata Motors.
It turns out that those climbing into India's middle class want cheap cars, but they don't want cars that seem cheapand are willing to pay more than Tata reckoned for a vehicle that has a more upmarket image
References
http://www.pcmrd.org/Documents/Journals/PMRVol1 0Issue2/PMRVol10Issue2-5.pdf http://online.wsj.com (wall street journal) www.studymode.com www.tatanano.com http://daindunston.com http://deniseleeyohn.com/bites/2013/05/22/whatwent-wrong-with-tata-motors-nano
Thank You