Keeping the potency of Indian Automobile Industry in head. a few old ages back. around 2006 Ratan Tata conceived the thought of a bantam auto with even a bantam monetary value ticket for quickly turning in-between category section. Tata Nano was seen as a victory of place grown technology ; as doing a merchandise which encapsulates the dreams of 1000000s of Indians with all the elements of mix i. e. safety. technology. design. efficiency. manner at a monetary value ticket of one hundred thousand was in itself a challenge. The intense media examination about the few instances of Nano catching fire brought a singular dent in Nano gross revenues and shattered the customers’ assurance in auto. Since so Nano is fighting difficult to recover its strong image in the eyes of its clients as still the immense potency of in-between section is undiscovered.

The treatment arises about the turnaround schemes of Nano maintaining in position its initial launch success. a few quality failures and deformed perceptual experiences in the heads of its clients. This treatment will further add to the design of schemes for future new merchandises which are good strategized for success with clear and defined imaginable about the costs. and market sections but fail due to a few little but important errors.

Keywords: Merchandise Development. . USP ( alone merchandising preposition ) . Buzz selling. Communication Complacency. Strategic Repositioning. Resurrection.

*This instance survey is developed during the Resurrection stage of Tata Nano in March 2012 for schoolroom treatment as a perfect illustration for analysing assorted facets in the launch of an advanced merchandise. . its market credence. Changing people perceptual experiences etc.

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A Dream Shattered or Still A Large Potential: A Case Study of Tata Nano

Introduction

Merely a few months back. India overtook Brazil as the 6th largest rider vehicle maker in the universe ( Wikipedia Automobile industry ) . This proves the fact that the Indian Automobile Industry is traveling at a fast gait. India is a turning market for Hatchbacks. Sedans. SUVs MUVs. Crossing overs and MPVs. Among these little autos have emerged as a clear victor. In fact the state has become a taking Centre in bring forthing little autos. Keeping this potency of Indian Automobile Industry in head. a few old ages back. around 2006 Ratan Tata conceived the thought of a bantam auto with even a bantam monetary value ticket for quickly turning in-between category section. Tata Nano achieved instant success when it was introduced as world’s cheapest auto in the twelvemonth 2009.

Tata Nano was seen as a victory of place grown technology ; as doing a merchandise which encapsulates the dreams of 1000000s of Indians with all the elements of mix i. e. safety. technology. design. efficiency. manner at a monetary value ticket of one hundred thousand was in itself a challenge. And Tata’s seemed to carry through all the promises to its clients by offering Nano. Majority of Indian population belong to middle category. when it comes to buying autos they look for the low-cost vehicles. Few surveies related to consumer purchasing behaviour show that if an single belonging to middle category wants to have a auto so he can easy blast out `1 lac to `1. 5 hundred thousand. Therefore. while purchasing a auto. monetary value ticket becomes a premier factor. Though pricing is the premier factor. public presentation. manner and lastingness besides affair.

So. Nano basically being a dream undertaking for Tatas. satisfied really aptly all the criteria’s of a successful launch. that is. bantam monetary value ticket. public presentation. design. manner. trade name. welcoming clients. milage. infinite. insides. expressions. elegance and so on. But the sarcasm started when the safest acclaimed auto of Tata’s caught in fires while its manner back from salesroom to place. The intense media examination about the few instances of Nano catching fire brought a singular dent in Nano gross revenues and shattered the customers’ assurance in auto. Since so Nano is fighting difficult to recover its strong image in the eyes of its clients as still the immense potency of in-between section is undiscovered.

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A Dream Shattered or Still A Large Potential: A Case Study of Tata Nano

The treatment arises about the turnaround schemes of Nano maintaining in position its initial launch success. a few quality failures and deformed perceptual experiences in the heads of its clients. This treatment will further add to the design of schemes for future new merchandises which are good strategized for success with clear and defined conceival about the costs. and market sections but fail due to a few little but important errors.

This treatment can further go on for strategic repositioning and turnaround of merchandises accepted good in their initial phases of ‘PLC’ but matured really shortly due to certain important selling errors. Conceiving of the Idea The thought conceived about Nano was a dare dream of Tatas’ non because of its unbelievably low-cost monetary value but besides because of the promise it held for supplying safe personal mobility to a immense subdivision of the Indian two Wheeler siting population. It was an wholly new merchandise

Beginning: Statisticss by Society of Indian Autommobile Manufacturers

section with a whole different dimension of its demand to incorporate costs within a predetermined mark of `1 hundred thousand. The Nano monetary value was the lone certainty at the clip thought was conceived. And so get downing from a clean sheet of paper. the auto was designed and developed maintaining fabrication costs. stuff costs and production costs at lowest possible degree along with keeping its character. manner. endearing expressions and finished quality.

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A Dream Shattered or Still A Large Potential: A Case Study of Tata Nano

Problems in the Product Development Phase Ride for Tatas in the production of Nano had been anything but smooth. Tata built a Nano works in West Bengal but was forced out in Oct. . 2008 due to violent protest from husbandmans. This event resulted in the impermanent hold in the production along with doing a immense loss of substructure costs of a works about ready for auto production. Another works was built at Sanand in Gujrat where the production eventually started. These initial constrictions in the production someplace affected the enthusiasm about the undertaking and resulted in limited early handiness which caused pre-bookings and lottery bringings. This priced out many purchasers negatively snaping out the impulse from the market. Almost from the start the undertaking was plagued by jobs and were magnified by intense media engagement.

Most Anticipated launch When India’s Tata Motors launched Nano in 2009. the construct of the world’s cheapest auto in one of the fast growing vehicles markets seems pre-destined for success. At its launch. auto purchasing kineticss seemed to be undergoing a elusive alteration. Tata traders were flooded with questions from prospective purchasers. Peoples chiefly in-between category were uneasily waiting for it. Bing the world’s cheapest auto. Tata Nano had an border over its rivals in footings of its pricing. which helped Tata to register nice gross revenues figures ab initio. While taking between Maruti Suzuki 800 and Tata Nano. people gave missive more weightage in footings of monetary value and design.

Its biggest USP ( alone merchandising preposition ) was its attractive expressions at lowest monetary value. In March 2009. when Tata was launched it got beforehand engagements upto 2. 00. 000 autos but it went through lottery path to give the first 1. 00. 000 nanos to its lucky clients. Nano became the most desired thing for two Wheeler riders and Tata was so confident about its merchandise that it did’nt travel into any selling program for Nano. Its intense ballyhoo was itself making its bombilation marketing1. So. Tata got busy in bring forthing Nanos to carry through its intense demand but at the same clip being really self-satisfied about the market and clients perceptual experiences of the auto.

1.

Buzz selling is word of oral cavity recommendations by its bing users

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A Dream Shattered or Still A Large Potential: A Case Study of Tata Nano

Sudden No-No for Nano Among all this ballyhoo when the new emerged in-between section of auto proprietors were basking their drive in their sparkling fashionable Nanos. first instance of Nano catching fire was reported in March. 2010 while its trip from salesroom to customer’s house. Another incident quoted the auto went on fires shortly after the driver reported a flicker from the rear side of the auto. The confidence of Tata’s cheapest auto being safest proved ironical and the media which was giving intense examination to the undertaking did its occupation good during the bad times besides.

The security failure of the auto wholly broke the trust of the clients in Nano. A drastic lessening in gross revenues was noticed in November 2010 ( from 9000 units to 509 units per month ) when company called its bing clients to put in the safety devices in the auto. So with in a twelvemonth the inspiration of Tatas started looking like a failure as its gross revenues went about half within a twelvemonth. Gross saless were far off the mark of 25000 autos a month and the Nano works with an one-year capacity of 250000 autos kept bring forthing merely 8000 units a month till March 2011.

Industrial Scanning and analysis showed that the rider vehicles production in the state was turning enormously ( Fig. 3 ) . but Nano gross revenues showed a assorted tendency till the mid of 2011 ( Fig 2 ) . The company took to replace the starting motor motors in the older theoretical accounts and launched a new theoretical account in 2012 but replacing of the parts could besides impact the farther gross revenues of new theoretical account as good said. ‘Indian clients do non forgive easily’ . So. there was a great challenge for Tata to retain its trade name image. Inappropriate Market Positioning: Cheaper V Affordable After the several months of dissatisfactory gross revenues of Nano. it became clear by the terminal of 2011that its cheapest ticket has really shunned its gross revenues.

The position witting client didn’t want to acquire associated with its ‘cheap’ ticket and instead opted for somewhat pricier challengers. Cipher wanted to be caught with a ticket of ‘poor man’s auto. So instead being a functional measure above a bike it became known as a bargain-priced auto. Crucially auto has struggled to happen a nucleus market. The overpowering involvement in the auto brought all the assorted sections of the clients in the market. So. a typical scheme was losing to give a right placement and cleavage to the highly typical merchandise. Communication complacence Tatas relied to a great extent on the promotion instead than a decidedly designed communicating scheme.

There was immense engagement from media. industry and public at big. Rather than leveraging this promotion Tata became self-satisfied about the communicating. It became the first auto to be launched at zero cost of advertisement with a immense success. The promotion generated was far greater than what could be generated through any conventional run. Tatas supplication was that job was non of the complacence. Because the Nano works had to travel from West Bengal to Gujarat. production timelines were hard to keep. With non adequate autos being made. the company felt it didn’t have to publicize or even put up efficient distribution channels. But the ballyhoo about the auto died down. and the narratives about the fires gained prominence.

A Dream Shattered or Still A Large Potential: A Case Study of Tata Nano

On the hindsight. apart from being delayed. the first ads were non the most appropriate. They showcased twosomes ensconced in Nanos. While those on two Wheelers stared at them balefully. It seemed to be merely for people who have to stretch themselves to purchase a auto ; instead it could hold been for homemaker or a child who had merely turned 18. But the advertisement focused at para degree. Tata seemed to sign the media narrative about it being a Garibrath instead than a cool auto. Another ad in the early 2011 besides projected the same image having a miss in a unquestionably countrified puting expecting the household Nano.

Initial ads of Tata Nano: Khushion ki Chabi

Such errors by Tatas really fuelled the perceptual experience of a hapless man’s auto. The auto is excessively much of an emotional purchase. It’s the 2nd biggest accomplishment after a house and the cheapest ticket proved black for Nano. Resurrection by Tatas Nano is the dream of Tatas and seeing the market flooded with so many little autos Tatas still see a immense potency in Nano and is looking to undo its errors in the yesteryear. As quoted by Ratan Tata on the Eve of Auto exhibition 2012. ‘Nano is non a floating-point operation. We have lost an early chance due to errors in placement and marketing the merchandise. ’ The new selling run by Tata is all set to alter the perceptual experience from a Garib rath to a cool auto as it allows immature to be so capricious with the cool auto that they can drive the several kilometres for a cup of perfect tea!

Road to Lal Tippa

Tata is traveling to establish Tata Nano CNG by the terminal of 2012. The company has given the auto a new makeover by extra characteristics like new insides. a powerful gasolene engine. better fuel efficiency and attractive colourss like bubbly gold and papaya orange. Another enterprise is offering Tata Nano felicity warrant which more than doubles the car’s guarantee from 18 months to four old ages take a firm standing on its dependability. Offering fast path funding for purchasers with loan blessings in 48 hours and cut downing down payments to merely `15000 is another step. Tata is be aftering to come in new planetary market such as Thailand. Myanmar. Indonesia and Bangladesh with Nano. The 2012 version of Nano was unveiled by the Tata in the terminal of 2011 and now as the financial twelvemonth ended in March. the new attempts to advance the 2012 Nano in the Indian market have started paying off. After July 2011 till March 2012 Tata Nano has registered an addition in gross revenues and crossed the 10000 grade at the terminal of the financial twelvemonth 2011-12 ( March 2012. 10475 units. Table1 ) .

The lovely Nano is a large good auto in little bundle and its value is being recognized bit by bit by the clients. Hence. with the strong belief in head that the potency of Nano market remains every bit huge as it was originally predicted ; Tata is traveling with some strong stairss in the market as it is besides be aftering to establish a diesel discrepancy of Nano in near future which will turn out a value preposition for its clients. Long manner in front Nano has to travel a long manner in recognizing its dream of 20. 000 plus units per month that would acquire its works in the western province of Gujarat running full accelerator which is soon traveling at the degree of around 10000 units per month.

Hailed as a collector’s item of invention spawned from and targeted at the emerging upper in-between category ; Nano is working hard to undo its errors in the yesteryear. As little auto section is holding really strong potency. there is a inundation of little auto trade names in the Indian market. It has to confront strong competition from its close challengers such as Bajaj’s RE 60. Maruti Suzuki Cervo ( approx. ` 1. 5 hundred thousand ) . Maruti Alto and somewhat pricier options Hyundai Santro. freshly launched Hyundai Eon etc. Nano faces lifting competition from used auto section

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A Dream Shattered or Still A Large Potential: A Case Study of Tata Nano

besides. Apart from the strong rivals. high rising prices and decelerate economic growing besides put another challenges for Tata Nano. Tata is making difficult to raise the merchandise section by intensive dependability technology. advertisement inventions for shifting and strong distribution and service installations to remember the trust of its clients. Let’s see how Nano makes its shapers proud amidst conflicting perceptual experiences of clients. the huge competition and lifting rising prices by keeping expected public presentation at its tiniest ticket! ! ! Questions 1. What do you believe were the grounds due to which Nano was such a welcome launch more than any other auto launch in the industry antecedently? 2. As Cheapest auto being its USP ( Unique selling Preposition ) . how it went against the gross revenues public presentation of Nano later. Give cardinal grounds. 3.

“Intense Media attending about the merchandise went for and against it besides. ” Elaborate. 4. How the changed perceptual experiences about the auto impacted its gross revenues? Besides give other cardinal grounds for such a huge fluctuation in its gross revenues public presentation. 5. Despite the assorted Resurrection attempts by Tata what possible do you see of Nano in quickly turning little auto section in coming old ages in the position of lifting competition in the section?

Mentions:

‘Auto Expo 2012: Tata Nano is non a floating-point operation. merely an chance wasted: Ratan Tata’ . Economic Times. Jan 6. 2012. ‘No Takers: Is the Tata Nano Runing Out of Gas? ’ . India [ electronic mail protected ]. January 27. 2011 Buddiraja S. . ‘ Case Analysis in Marketing Management’ . Tata Mcgraw hills. New Delhi. Dhingra Mayank. ‘Marketing Case Study: Tata Nano — Document Transcript’ . ( Aug 2009 ) . Slideshare. India Today/ Business/Story New Delhi. Jan 6 2012. Kotlar Phillip. ‘Marketing Management: a South Asiatic Perspective’ 13th Edition. Pearson Education. New Delhi. Statisticss by Society of Indian Mobile Manufacturers. hypertext transfer protocol: //www. siamindia. com/scripts/market-share. aspx Economic Times. ’World’s cheapest car’ ticket backfires’ . . 24 Jan. 2012 Web Sources: World Wide Web. tatamotors. com/media/press-releases. php? id=732 World Wide Web. zigwheels. com/tata-nano/ World Wide Web. lens implant. co. za/business/business-news/home-sales-of-world-s-cheapest-car-backfire-1. 1219524 Assorted web sites of Tata Motors