What are major challenges being faced by TATA NANO in its sales and distribution and how can it overcome them.

1. TATA NANO
SALES and DISTRIBUTION STRATEGY

2. DISTRIBUTION
TATA NANO is using Hub and Spoke Model for distribution
TATA has many C&F Agents (Collects Nano from hubs and distribute it
across nation)

3. TATA NANO DISTRIBUTION
MODEL
Hub and Spoke Model

4. PRESENT ISSUES WITH
DISTRIBUTION STRATEGY
 While the Nano seemed tailor-made for rural drivers, Tata only has dealers in
major cities.
 Lack of dealers in the target market i.e semi urban cities and rural areas.
 While the Nano seemed tailor-made for rural drivers, Tata only has dealers in
major cities. The car’s reputation was further damaged when five of the first
30,000 cars had engine fires. Although no one was hurt in these instances, two
of the cars burnt to the ground.
 The final nail in the coffin is the price: Rising material costs pushed the car’s
price up to Rs. 1.5 lakh the same as a used Maruti 800. Even without the social
stigma, this price left many people wondering why they would choose to buy a
car that didn’t even have a trunk

5. TARGET SEGMENT

6. RECOMMENDATIONS
• Setting up exclusive showrooms for
NANO
Reinvent • Developing Specialized Logistics
the Facilities by collaboration with
Specialized logistics providers
distribution • Should Move from full range dealership
to Product Based Dealership
strategy • Financing better facilities like Tata
Finance

7. RECOMMENDATIONS
Reinvent • Dedicated Nano kiosks and Mobile display
units, the company also can step up its drive
the through the hinterlands to spruce sales.
• Association with Retail Outlets like Vishal Mega
distribution Mart, Shoppers Shop, Pantloon etc. (Booking
facilities, with promotion schemes like ‘Win Silver
strategy Coin’)