Here are a few marketing fundamentals that can be observed from the failure of the Tata Nano Campaign.
Avinash Tavares
Management Trainer & Life Coach
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From India, Pune
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39Avinash Tavares
Management Trainer & Life Coach
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From India, Pune
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very true...a great post! These are the reasons everybody can relate to and had the company thought like a first time buyer they would not have built this car just for the sake of it.
From India, Chandigarh
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From India, Chandigarh
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I think you have missed the biggest point about the TATAs. They have never been traditionally aggressive and pushy in their sales strategy for any of their products or services so far.
Also, I think you missed weighing the global inflation trends in your argument which has had a huge bearing on the cost of material which never helped TATA's strategy of having a reverse priced product for a price-sensitive market like ours. A reversed priced product is where the price of the product is decided first, the quality of the materials used and technology in general are worked backwards to provide a quality which is better or at least equivalent in the existing market.
A reversed priced product is generally good in markets that do not experience a very high rate of inflation. However today, the high rate of inflation is a global reality across all regions.
Therefore, it looks as if TATA NANO "reneged on the promise" of making a car worth a Lac since the price of the car now is almost double the initial launch price. It is priced at around Rs. 2.20 lakhs which is almost the price of a Maruti 800 back then, therefore beating the whole idea of NANO being a cheap car.
Besides, I think you must check the source of your mileage facts. Tata Nano gives around 23 KMPL, better amongst its peers such as ALTO, SPARK, etc.
From India, Bangalore
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Also, I think you missed weighing the global inflation trends in your argument which has had a huge bearing on the cost of material which never helped TATA's strategy of having a reverse priced product for a price-sensitive market like ours. A reversed priced product is where the price of the product is decided first, the quality of the materials used and technology in general are worked backwards to provide a quality which is better or at least equivalent in the existing market.
A reversed priced product is generally good in markets that do not experience a very high rate of inflation. However today, the high rate of inflation is a global reality across all regions.
Therefore, it looks as if TATA NANO "reneged on the promise" of making a car worth a Lac since the price of the car now is almost double the initial launch price. It is priced at around Rs. 2.20 lakhs which is almost the price of a Maruti 800 back then, therefore beating the whole idea of NANO being a cheap car.
Besides, I think you must check the source of your mileage facts. Tata Nano gives around 23 KMPL, better amongst its peers such as ALTO, SPARK, etc.
From India, Bangalore
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Avinash has most of his facts wrong. I don't know where he concluded, "First-time buyers want to own a big car even if it is a second-hand car." If this were the case, then the M800 or Alto would not be the #1 seller in India for such a long time. The facts about mileage and air-conditioning are also incorrect.
From India, Bangalore
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From India, Bangalore
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Even though the Nano is a budget model, it is affordable for most middle-class families. It comfortably accommodates four family members and can even be considered a status symbol. It is not as luxurious as other cars. Initially, people were impressed by its marketing and low price, but the recent drastic increase of 2 lakhs is disappointing.
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Raje
From India, Madras
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Regards,
Raje
From India, Madras
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The positioning at first was "aam aadmi car" or People's car. One lakh was a magically affordable price with so much value addition for the owners. Second, as Raje mentioned, it is depressing to note the price increase.
A TATA product is really good; however, the ads, promotion, launch itself was not well planned, and the status symbol factor was missing.
From India, Madras
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A TATA product is really good; however, the ads, promotion, launch itself was not well planned, and the status symbol factor was missing.
From India, Madras
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On my opinion, TATA’s failure on the promise of releasing a car for rupees one lakh is the major setback for the Car.
From India
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From India
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I completely agree that Nano gives higher mileage compared to an Alto, etc. Do not get me wrong, the Nano is an exceptionally well-designed car. Its simplicity and functionality as a small car are unmatched.
My goal with this PPT was to highlight the poor marketing of a great product. Initially, the Nano was marketed/proposed as a replacement for the family two-wheeler. In my view, that was a mistake. I could be wrong, but in my view, this is a city car - easy maneuverability, less parking, and yes, high mileage for a 4-wheeler. Instead, in the TV commercial, they have shown it as a village car.
It is indisputable that everyone who wants a car prefers a sedan. As of now, the biggest competition for a Nano in terms of price is a second-hand Alto/WagonR. Not that they are big cars, but they are "perceived" as safe and value for money.
From India, Pune
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My goal with this PPT was to highlight the poor marketing of a great product. Initially, the Nano was marketed/proposed as a replacement for the family two-wheeler. In my view, that was a mistake. I could be wrong, but in my view, this is a city car - easy maneuverability, less parking, and yes, high mileage for a 4-wheeler. Instead, in the TV commercial, they have shown it as a village car.
It is indisputable that everyone who wants a car prefers a sedan. As of now, the biggest competition for a Nano in terms of price is a second-hand Alto/WagonR. Not that they are big cars, but they are "perceived" as safe and value for money.
From India, Pune
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Again, your conclusion that Tata has a poor marketing campaign is possibly premature and misplaced.
It is highly disputable to claim that everyone is looking to buy a sedan. The pressure on space and parking is a significant reality. Hatchbacks outstrip sedans any day, especially in the UK.
Offering a 60,000 km warranty for a new car with a BS-IV compliant engine to first-time car buyers is a significant value addition compared to purchasing a second-hand car like ALTO/WAGON R, which has already covered that many miles.
You seem to have overlooked the 60,000 km warranty, low down payment, and installment advertisements for the Tata Nano. These effectively counter the inclination to buy a second-hand car, while the low installment conceals the high price of Rs 2.20 Lakhs.
From India, Bangalore
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It is highly disputable to claim that everyone is looking to buy a sedan. The pressure on space and parking is a significant reality. Hatchbacks outstrip sedans any day, especially in the UK.
Offering a 60,000 km warranty for a new car with a BS-IV compliant engine to first-time car buyers is a significant value addition compared to purchasing a second-hand car like ALTO/WAGON R, which has already covered that many miles.
You seem to have overlooked the 60,000 km warranty, low down payment, and installment advertisements for the Tata Nano. These effectively counter the inclination to buy a second-hand car, while the low installment conceals the high price of Rs 2.20 Lakhs.
From India, Bangalore
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Sajr, I agree with what you are saying. Everyone wants a long and luxurious sedan, which is why companies like Merc and BMW can charge in lakhs. And, as you say, most opt for a hatchback or a small car for practicality and affordability while not compromising on safety and comfort.
About the warranty and low down payments, in theory, that should result in higher sales of the Nano. I hope it does happen because an increased number of Nanos on the roads will surely reduce traffic congestion, right?
From India, Pune
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About the warranty and low down payments, in theory, that should result in higher sales of the Nano. I hope it does happen because an increased number of Nanos on the roads will surely reduce traffic congestion, right?
From India, Pune
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1. On the positive side, the major lesson from Nano is that the company was able to create mass awareness, almost a hype, for a product almost without spending anything on marketing or ad spend, initially. This hype also resulted later in people's resentment because this hype was not reflected on the road; the numbers didn't come.
2. Even for the first-time buyers, the risk of not buying a complete car was more compared to adding a few hundred rupees to their EMI. Even today, after so much ad spend and awareness, how many of us would risk a single day 400-500 km journey on a Nano? With the ever-increasing length of our highways, everyone wants to be on the safer side when on the road.
3. Nano is definitely a boon for a second or third car buyer. Ask anyone living in a metro where the fight is for even a centimeter of space. For a first-time buyer, it's not more than a four-wheeled auto.
From India, New Delhi
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2. Even for the first-time buyers, the risk of not buying a complete car was more compared to adding a few hundred rupees to their EMI. Even today, after so much ad spend and awareness, how many of us would risk a single day 400-500 km journey on a Nano? With the ever-increasing length of our highways, everyone wants to be on the safer side when on the road.
3. Nano is definitely a boon for a second or third car buyer. Ask anyone living in a metro where the fight is for even a centimeter of space. For a first-time buyer, it's not more than a four-wheeled auto.
From India, New Delhi
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First of all, every Indian must be proud of Mr. Ratan Tata. We have many car companies in the country, but only Tata Motors showed courage to introduce a car with such a price range. My organization makes spare parts for the Nano, and I know many inner facts about this vehicle. Obviously, earning a huge profit was not the intention of Tata Motors; their only intention was to bring luxury to middle-class families. Hence, we should respect their approach.
As far as technical points are concerned, facilities are directly proportional to cost. Therefore, one should not expect all facilities at such a small cost. If you need luxury, options are available.
Sachin
From India, Pune
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As far as technical points are concerned, facilities are directly proportional to cost. Therefore, one should not expect all facilities at such a small cost. If you need luxury, options are available.
Sachin
From India, Pune
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I very much agree with sachin, but the point we were sharing was, not to doubt the integrity of the Tata group, which even I am proud of, but the lessons from Nano. Let us try to be relevant.
From India, New Delhi
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From India, New Delhi
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Well, according to me, the long wait period has really killed the charm of owning this car. First, you are igniting the mindset of the Indian middle class for owning a car, and then you are asking them to wait for practically 2 years? No way they are going to wait no matter how superb the model is. Look at the Swift Dzire. It's such a great car, yet potential buyers are also moving away simply because of the long wait period.
From India, Pune
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From India, Pune
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