Question

Do you think the Nano will succeed in India or around the world? What do you think of the Nano's revised positioning as the coolest smallest car and what recommendations would you give to Tata Motor's management?

Answer 1

As it has already been noticed that Nano is a big failure for Tata Motors in India and around the world. With its existing market strategy of cheap car, has back fired enormously and there is little hope the things will change much for Nano.

Once the image is perceived in the eyes of the customers, it gets very difficult to break it. Same thing has happened with Nano as well. Being perceived a poor people car, no wants to get associated with Nano, even though it’s the cheapest car in India.

The revised positioning of Nano as coolest smallest car is not going to make much of the difference as breaking customer perception about Poor people car is very difficult. In India and other developing countries, for with Nano was initially positioned, a car is still a matter of pride and some status is associated with it. Therefore, very few would compromise with their pride/status to own a Nano.

Following are the recommendation to Tata Motor’s Management:

• Coming up with bigger marketing campaign to connect the Nano with Youth. Since its very affordable, once its find the flavor among young, the success is guaranteed
• Organizing various contests and experience sharing activities for youth through social media platform will get some connect with them.
• Coming up with Electric Variant and re-position it as eco-friendly car will get some connect with prospective customers.
• With some modifications and probably a new name, the Nano can be re-introduced as Youth, Eco-friendly car.