HARVARD BUSINESS REVIEW CASE STUDY - POSITIONING THE TATA NANO (A)
Q.1) If you are the marketing head of Tata Nano how would you have managed the situation?
Ans:- If I would have been the marketing head of Tata Nano, then I would have considered the following points to manage the situation effectively :
1. Tata Nano is now known to be the cheapest model in India and displays excellent performance. This can be purchased from the organised used car markets all over India but the possibilities of finding a second hand Tata Nano is less as it is still fresh and new to the market.
2. Nano is thought to have affected the used car market in India, as some Indians may opt to buy a Nano rather than a used vehicle. The new-car market is also being affected. Sales of new Maruti 800 cars, the second-cheapest car in India, dropped by 20% and used models by 30% immediately prior to the Nano's introduction.
3. Catering to the demands of Indian domestic market, Tata Nano is launched as an inexpensive, rear-engined, four-passenger car that has created an exceptional buzz in the entire country.
4. To symbolise it as a modern people's car and presently in India, to make Tata Nano cars available in three trim levels, namely Tata Nano Std, Tata Nano CX and Tata Nano LX.
5. The pricing varies according to the variants as well the additional features that it comes with. The base variant of Tata Nano is priced in the range of Rs.1.2 lacs to Rs.1.3 lacs. CX model of Tata Nano is available in the price range of Rs.1.5 lacs to Rs.1.6 lacs. On the other hand the price of LX model of Tata Nano ranges between Rs.1.8 lacs and Rs.1.9 lacs keeping the target segment in mind.
6. Tata Nano has been launched in the Indian market with a unique selling proposition as the ‘car of the people'. This model may be the cheapest small car in the world but one must not undermine the world class interior appearance it exhibits.
7. To make its positioning strong, I would make...