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09/23/16
POSITIONING IS INEVITABLE –
A CASE STUDY OF TATA
NANO
Presented By:
Rishi Raj(15201018)
Sadananda Tadingi(15201022)
Netra Majhi(15201036)
1
09/23/16
The TATA Group : Company History
•
Founded by Jamsetji Tata in 1868 as trading company
•
First steel mill, power utility, luxury hotel and international
airline
•
By 2011, 98 companies over 7 sectors.
•
Company seen as Inspired trust & a strong commitment to
ethics
•
By TATA Code of Conduct, TATA promised to improve the
quality of life and Nano is a prime example.
2
09/23/16
Objectives of the case
•
To comprehend the positioning strategy adopted by Tata
Nano in India
•
To determine the reasons for failure of positioning strategy
adopted by Tata Nano in India
•
To understand the rationale behind the repositioning of Tata
Nano
3
09/23/16
Tata Nano -History and Origin
•
Nano was unveiled in the 9th
Annual Auto Expo on 10th
January 2008 at
Pragati Maidan in New Delhi, India
4
Awards Awarding Organization Year
Indian Car of the Year (ICOTY)
award.
Instituted by leading automotive magazines in India, in association
with JK Tyre
2009
Business Standard Motoring
Indian car of the year
Business Standard 2010
Good Design Award Museum of Architecture and Design together with The European
Centre for Architecture Art Design and Urban Studies
2010
Gold prize in the Best New
Product segment
Edison Awards. 2010
Best Car Advertisement of the
Year Award
Bloomberg UTV , Autocar India Awards 2011
09/23/16 5
Tata Nano –Positioning Strategy
•
The target customers for Tata Nano were lower and middle income families, who
aspire to upgrade to 4- wheelers from being 2-wheeler users.
•
Management at Tata Motor’s tried to focus on the price factor and developed
“Price Positioning Strategy” for Tata Nano.
•
Tata Nano tried to position itself as the most Affordable Car in the world.
•
The former Chairman of Tata, Mr. Ratan Tata, has envisioned Tata Nano to
become a “People’s car.”
•
The car was positioned as a people’s car since it offers comfort and affordability
to every person but inadvertently Tata Nano got positioned as the “Poor Man’s
Car” and “Cheap Car”.
5
09/23/16
Failure of Positioning Strategy
•
Tata Nano was positioned on the price attribute dimension and was
widely publicized as the world's cheapest car at 1 lakh.
₹
•
In India price serves to signal quality i.e higher price serves to signal
higher quality and lower price serves to signal lower quality to the
customer.
•
Nano catching fire, which further weakened the trust for the brand
‘Nano’ .and people further believed that low price is because of low
quality.
•
Tata Nano’s distribution system was not also consistent with its
positioning strategy .The Nano did not have a large enough dealer
network in the rural areas and smaller towns .
6
09/23/16
Nano catching fire(New Delhi)
7
09/23/16
Tata’s Strategies for Revival
•
Tata Motor’s tried to correct its 4P’s , Firstly Tata Nano was re-engineered to fix
the issues related to the fire and customers were offered free safety upgrades for,
their Nano.
•
Secondly In September 2010, Tata Nano tried to reach its target segment through
electronic media channels but the advertisements have unfortunately been
featureless and catering again to the theme of affordability.
•
Tata motors also placed a new and unconventional distribution system, Tata
Motor’s set up 210 'F Class showrooms', each only about 500 sq ft in size and
stocking just one car in smaller towns, and hired 1,200 people to man them.
•
Management at Tata Motor’s tried to correct mistakes like promotion, distribution
and financing.
8
09/23/16
•
Tata Nano, decided to create a new niche for itself in august 2013 , by
managing to move away from tag like the “world’s cheapest car to "smart city
car“
1. Visual artistic and basic features positioning strategy :
•
Tata Motor’s have repositioned Tata Nano by boasting of some “intelligent
features” like power steering option, improved interior and exterior of the car
and improved fuel efficiency and additional features like remote keyless
entry, twin glove boxes, and a four-speaker Amphi Stream music system with
Bluetooth, USB and auxiliary connectivity.
•
The new Nano is available with new personalization kits- Jet, Alpha, Remix,
and Peach.
2. Promotional campaign positioning strategy:
•
Tata Nano’s new campaign called ‘celebrate awesomeness’ is becoming
popular among youngsters.
9
Repositioning Strategy
09/23/16 10
09/23/16 11
11
09/23/16 12
09/23/16
Conclusion
•
Nano's positioning as a "cheap" car killed the aspirational
element in the car and the performance of the model has been
terribly underwhelming over the years.
•
Although Tata Motor’s tried to correct its 4Ps it could not
help Tata Nano to get the success.
•
So finally after four years of it commercial launch,
understanding the inevitability of positioning management
repositioned Tata Nano as a "Smart City Car“.
13
09/23/16
Learning’s and Implication for the
Automobile Companies in India
1. Learning-1:
•
A sound understanding of consumer behaviour is essential to the long
run success of the brand.
•
Tata motor failed to understand the emotional need of their customers
since India's middle class want cheap cars, but they don't want cars that
seem cheap.
2. Learning-2:
•
Developing an effective positioning strategy is inevitable nowadays for
any organization.
•
Tata Motor’s failed to develop a proper positioning for Nano as a result
of which it got wrongly positioned as world’s cheapest car.
14
09/23/16
Thank You!!
15

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tatananoppt-160923132421 (1).pdf

  • 1. 09/23/16 POSITIONING IS INEVITABLE – A CASE STUDY OF TATA NANO Presented By: Rishi Raj(15201018) Sadananda Tadingi(15201022) Netra Majhi(15201036) 1
  • 2. 09/23/16 The TATA Group : Company History • Founded by Jamsetji Tata in 1868 as trading company • First steel mill, power utility, luxury hotel and international airline • By 2011, 98 companies over 7 sectors. • Company seen as Inspired trust & a strong commitment to ethics • By TATA Code of Conduct, TATA promised to improve the quality of life and Nano is a prime example. 2
  • 3. 09/23/16 Objectives of the case • To comprehend the positioning strategy adopted by Tata Nano in India • To determine the reasons for failure of positioning strategy adopted by Tata Nano in India • To understand the rationale behind the repositioning of Tata Nano 3
  • 4. 09/23/16 Tata Nano -History and Origin • Nano was unveiled in the 9th Annual Auto Expo on 10th January 2008 at Pragati Maidan in New Delhi, India 4 Awards Awarding Organization Year Indian Car of the Year (ICOTY) award. Instituted by leading automotive magazines in India, in association with JK Tyre 2009 Business Standard Motoring Indian car of the year Business Standard 2010 Good Design Award Museum of Architecture and Design together with The European Centre for Architecture Art Design and Urban Studies 2010 Gold prize in the Best New Product segment Edison Awards. 2010 Best Car Advertisement of the Year Award Bloomberg UTV , Autocar India Awards 2011
  • 5. 09/23/16 5 Tata Nano –Positioning Strategy • The target customers for Tata Nano were lower and middle income families, who aspire to upgrade to 4- wheelers from being 2-wheeler users. • Management at Tata Motor’s tried to focus on the price factor and developed “Price Positioning Strategy” for Tata Nano. • Tata Nano tried to position itself as the most Affordable Car in the world. • The former Chairman of Tata, Mr. Ratan Tata, has envisioned Tata Nano to become a “People’s car.” • The car was positioned as a people’s car since it offers comfort and affordability to every person but inadvertently Tata Nano got positioned as the “Poor Man’s Car” and “Cheap Car”. 5
  • 6. 09/23/16 Failure of Positioning Strategy • Tata Nano was positioned on the price attribute dimension and was widely publicized as the world's cheapest car at 1 lakh. ₹ • In India price serves to signal quality i.e higher price serves to signal higher quality and lower price serves to signal lower quality to the customer. • Nano catching fire, which further weakened the trust for the brand ‘Nano’ .and people further believed that low price is because of low quality. • Tata Nano’s distribution system was not also consistent with its positioning strategy .The Nano did not have a large enough dealer network in the rural areas and smaller towns . 6
  • 8. 09/23/16 Tata’s Strategies for Revival • Tata Motor’s tried to correct its 4P’s , Firstly Tata Nano was re-engineered to fix the issues related to the fire and customers were offered free safety upgrades for, their Nano. • Secondly In September 2010, Tata Nano tried to reach its target segment through electronic media channels but the advertisements have unfortunately been featureless and catering again to the theme of affordability. • Tata motors also placed a new and unconventional distribution system, Tata Motor’s set up 210 'F Class showrooms', each only about 500 sq ft in size and stocking just one car in smaller towns, and hired 1,200 people to man them. • Management at Tata Motor’s tried to correct mistakes like promotion, distribution and financing. 8
  • 9. 09/23/16 • Tata Nano, decided to create a new niche for itself in august 2013 , by managing to move away from tag like the “world’s cheapest car to "smart city car“ 1. Visual artistic and basic features positioning strategy : • Tata Motor’s have repositioned Tata Nano by boasting of some “intelligent features” like power steering option, improved interior and exterior of the car and improved fuel efficiency and additional features like remote keyless entry, twin glove boxes, and a four-speaker Amphi Stream music system with Bluetooth, USB and auxiliary connectivity. • The new Nano is available with new personalization kits- Jet, Alpha, Remix, and Peach. 2. Promotional campaign positioning strategy: • Tata Nano’s new campaign called ‘celebrate awesomeness’ is becoming popular among youngsters. 9 Repositioning Strategy
  • 13. 09/23/16 Conclusion • Nano's positioning as a "cheap" car killed the aspirational element in the car and the performance of the model has been terribly underwhelming over the years. • Although Tata Motor’s tried to correct its 4Ps it could not help Tata Nano to get the success. • So finally after four years of it commercial launch, understanding the inevitability of positioning management repositioned Tata Nano as a "Smart City Car“. 13
  • 14. 09/23/16 Learning’s and Implication for the Automobile Companies in India 1. Learning-1: • A sound understanding of consumer behaviour is essential to the long run success of the brand. • Tata motor failed to understand the emotional need of their customers since India's middle class want cheap cars, but they don't want cars that seem cheap. 2. Learning-2: • Developing an effective positioning strategy is inevitable nowadays for any organization. • Tata Motor’s failed to develop a proper positioning for Nano as a result of which it got wrongly positioned as world’s cheapest car. 14