The TATA NANO: What went wrong?

Group 5
Abhishek Purohit
Akash Date
Archana Nambiar
Disha Ajmera
Hardik Prithiani
Ivene Daniel
Prashant Jaiswal

Why the TATA NANO has been a fiasco, so far? Please identify the main mistakes made, in
terms of marketing mix and, in particular, with regard to the product positioning.
Positioning1.

They wanted to position it as affordable, an all weather family car, but the media positioned it as a poor mans car. TATA did
nothing to change this perception.

2.

Promotional budget was low in comparison ($800,000). They piggybacked ridded on the hype by the media.

3.

Instead of an innovative product (86 patents), they positioned it as a affordable car.

4.

Their communication regarding the positioning across the stakeholders was not in sync with each other. The organization had no
streamline idea about the positioning of the product.

5.

Early publicity limited Nanos ability to rectify their image. They never tried to rectify the negative image of the car.

. Product1.

The basic model did not have airbags, antilock system, power steering, or remote locking.

2.

Body was made of biodegradable plastics, 2 cylinders instead of 4.

3.

It made sounds similar to that of a Tuk-Tuk

. Price1.

Because of the intense perception of class positioning in India, many lower middle class people would prefer buying a used higherend car than buy a Nano, which would mark them as lower middle class.

2.

They positioned it as an alternative to a 2- wheeler, but was 3 times the price of a 2- wheeler. The mileage was also lower in a Nano
as compared to a 2- wheeler.

3.

They asked customers to make a full payment in advance, and collect the vehicle a year later. Should have launched the financing
scheme earlier.

. Place1.

They did not invest in a building rural network, which was a major market for TATA Nano.

TATA NANOs sale are struggling now. What would you do to turn
around the business?
Try to shed the cheap car image, and reposition it as a smart
city car, along the lines of Alto and Eon. Targeting should not be
income based but as efficient and modern car.
Clarity on the positioning of the product. All stakeholders should
be on the same page.
Including schemes like 2-wheeler trade-ins, attractive lending
options, cash discounts, providing free service and maintenance.
Putting Nano kiosks in rural areas. Multiple freebees etc. can be
rolled out to draw customers.
STP change- Reposition on psychographic segmentation, target
small nuclear families, elderly people, and youths.
Reduce the steps involved in the buying process. Micro financing
facilities, reduce paper work, move from zero interest to Paytm.