Positioning the Tata Nano †Case Memo

perspective the Tata Nano Case Memo Introduction Tata Motors control (TML), a part of Tata conference, a extremely respected conglomerate has a convergence that entrust revolutionize the mien India travels. The group was successful in delivering a simple machine that meets the goal come outlay of 1 hundred thousand rupees. People welcomed it with high pre employments and initial sales. plainly it has been found that the auto didnt light upon the tar urinate grocery. The initial excitement worn out away leading to drastic drop in sales. We learn break upd the fountain to bring out the postures and marketing strategies that TML give the bounce play to improve upon its sales. Strength . At 1 hundred thousand, bell is the study strength of Nano. It has been priced between the seedyest car and a bike. 2. enkindle efficient car in the Indian market. 3. Easily accommodate a family of four. 4. Tata group is the nigh respected corporates in India. This gives TML a n returns as people trust the brand. 5. The dense design provides easy maneuverability in the congested city traffics. Weakness 1. posture of the harvest-home as a cheap car. 2. Capacity limitation due to clutch of upstart incidentory lead to drawing off based delivery. 3. Absence of enough TML dealers to top the length and breadth of the country. . Low mete for the dealers. While TML provided 4 to 10 part dealer circumference for Nano the dealer margin was merely 2 to 3 percent. Opportunities 1. TML team views nano as an opportunity to provide a safer means of transport to a typic Indian family which rides on a motorcycle. The deuce wheeler segment presents itself as a great opportunity to nano to tap in. 76 % of automobile sales is in both wheeler market. 2. A large dower of Indians lie in the middle kinsperson income range. Presently their disposable income is on the skip due to better job opportunities.The fact that this section of people doesnt have a car and also privilege to own one if low-priced provides TML with unpar tout ensemblee take market opportunity. 3. Rising give notice prices pass on be advantageous to Nano as it is fuel efficient when compared to other cars in the equivalent segment. 4. The new Sanand factory will serve closely achieve the scale of operation . Threats 1. The major threat for Nano is from the cars placed in mid-sized segment. gainful a bit more customers get a larger car with large locomotive and a longer intersect record. 2. Incidents of almost Nanos catching fire also deterred customers from buying the car.Although the fire was due to strange electronic particles it did dampened the market sentiments. 3. Nano missed its designate market and it was catering to a market of second car buyers. 4. The move on versions which were well above 1 lakh were exchange more than basic model. This led to critics tap that Nano might increase the congestion in roads. 5. Political threats want Singur lan d problem. The drum analysis of Nano provided a picture of the intersection and the brand. We have use 4 Ps of marketing mix to further analyze the different aspects of Nano. ProductWhile develop Nano the unit of mea currentment team had one intent to provide a little embody car without compromising on the fibre of the car. TML went on with the following strategies to achieve this goal. 1. Nano was the most fuel efficient and economical car. 2. ternary models are available Nano, Nano CX and Nano LX. Nano had only the basic features without power steering, power windows etcetera The other models had extra features. 3. The car was intentional to accommodate more in slight space. Engine was kept in coffin nail portion to achieve this goal. 4. The suppliers were also rophyd into the design.They make light weight , low greet split designed especially for Tata Nano. 5. Nano had parts supplied from 100 suppliers. The suppliers viewed this as a new opportunity to develop thei r capabilities. 6. The engines for Nano were developed by TML itself. Tata nano has a 624 cc 2 engine cylinder. The car as a output achieved its stated goals. But unexpected incidents of some Nanos catching fire led to prepare up of negative outlook on the superior of the carrefour. Tata did took steps to ensure the quality of the product. 1. It fitted additional preventive parts in every nano. . TML had four nanos touring all oer India to prove that their product is capable of withstanding all conditions. TML could have gone for safety certifications save the cost prevented it from providing basic safety measures like air bags and anti-lock brakes. Pricing Pricing is the USP for Nano. The whole product evolved around the goal price of 1 lakh. Apart from the lower price of Nano TML also had cut dealership margins. 1. only if the basic model was priced at 1 lakh while the other variants CX and LX were priced at 157,808 and 181,438 rupees. 2.Dealer margins for nano were between 2 to 3 percentage with a 1 percent discount off the full phase of the moon dealer cost if the dealer paying(a) cash up front. 3. Although nor confirmed by TML it is believed that manufacturer margin was around 15 percent. The basic model with 1 lakh pricing failed to lure the customers while the advanced models with higher prices had more takers. Distribution 1. deficiency of dealerships was bothering TML as they couldnt reach out to the target market. 2. TML had 214 dealerships spread over 28 states in the country. 3. TML followed an unique model for pre bookings. It took supplement of other Tata group companies.The pre booking forms were do available in Croma ,Westside stores, World of whale and Tata Indicom exclusive stores. In addition the pre booking can be fatiguee through online or from SBI banks. 4. The land problem led to capacity limitation. The initial production was limited to 50,000 nanos. 5. A lottery system was used to allocate cars to people who had pre boo ked it. 6. TML had an nous to promote entrepreneurial engineers to assemble the car at a rural emplacement where distribution was not available. But this brain was dropped due to concerns on warranty. Promotions Promotion of nano was a major task ahead of rattan palm Tata.TML needs to adjust its marketing strategies in order to sell the volume of cars that could be produced with the new plant. The following are the slipway in which the product was promoted. 1. Right from the lineage Nano was promoted heavily by advertisements. The car was denote as cheapest car in the market. 2. TML strong on the price aspect alone in its campaigns. This had negative impact on the minds of customers that the car may not be on par with its qualities. TML should make sure to change the perception of customers so that they dont view nano as low cost car but an affordable car with quality standards.The quality standards and safety measures have to be promoted vigorously as the people expect thes e features when investing 1 lakh rupees. Conclusion TML has a product that will help the millions to get a decent and safe way to travel. dissimilar the second car buyers, the middle pattern i. e. the first time car buyers will view nano as a way to travel along with family. It leads to high expectations on safety and quality since individuals never peril the safety of their family. TML has to make sure that the product is rightly positioned as the one with unavoidable quality standards and high safety measures to rope in a middle separate customer.