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TATA NANO Case study analysis

WHY DID TATA NANO
Positioning, Branding, psychographic, Tata Nano.
SWOT Analysis
1. Strengths
2. What made the brand weak? Weaknesses
3. Threats in the SWOT analysis of Tata nano.
Factors & Failure
The Positioning Failure
Psychographic Factors

Conclusion

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TATA NANO Case study analysis

  1. 1. CASE STUDYANALYSIS WHY DID NANO FAIL ? Submitted By Shubham Tyagi MBA 2nd Shift Submitted To Maitri Sawarn Asst. prof.
  2. 2. COMPETITOR CUSTOMER नह ीं हो सकता हो जयेगा तो मजा आ जयेगा Not Possible If done it will be a great achievement
  3. 3. A CAR WHICH WAS PRICED ONLY A LITTLE HIGHER THAN IPHONE TATA NANO IPHONE
  4. 4. EYE BALL ATTENTION ATTENTION SEEKING POTENTIAL
  5. 5. PRESIDENT OBAMA IN INDIA PRESIDENT OBAMA PRAISES THE NANO CAR
  6. 6. HYPE
  7. 7. MARKETING CAMPAIGN An Organized Course Of Action to Promote And Sell a Product or Service. TATA NANO ON SOCIAL media
  8. 8. MARKETING TEAM
  9. 9. BRANDING
  10. 10. No one wants to own a car, that showcases as cheapest car.
  11. 11. STRENGTH & WEAKNESS Price was Strength but Positioning was weakness HIDDEN Narrow POSITIONING PRICE
  12. 12. Productio n Cost saving Engineering
  13. 13. SELECT WRONG TARGET AUDIENCE Tata Motors basically Segmented and targeted the following groups of Indian population: 1.Small City 2.Villager 3.Middle class •Mainly the lower middle class •Upper lower class 4. Usually the two-wheeler users. 5.. Family with 3-4 members who have troubles while travelling on a 2-wheeler. In City Family are Leaner & Road are Cleaner
  14. 14. VALUE PROPOSITION EMOTIONAL VALUE FINANCIAL VALUE RELATIONAL VALUE PERFORMANC E VALUE
  15. 15. EMOTIONAL VALUE Aspirational value Luxury item Religious Beliefs Social Beliefs
  16. 16. EMOTIONAL POSITIONING
  17. 17.  40000 protestors in singur complaining about abduction of farmer lands.  The company had to shift the Nano project to Sanand in Gujarat on October 3, 2008, following intense protests against acquisition of farmlands, led by Mamata Banerjee's Trinamool Congress.  They demanded that the land should move back to the agriculturists and giving the money which they had paid at the time of land acquisition.  Couldn’t operate in hostile situation in Kolkata. FINANCIAL VALUE
  18. 18. FINANCIAL VALUE
  19. 19. FINANCIAL VALUE
  20. 20. PERFORMANCE VALUE Innovative Features Quality Fashionable Leader
  21. 21. INCIDENT AND ACCIDENT There were several incidents of the vehicle catching fire too. A lot of fiber and plastic was used instead of steel to keep the weight of the car low. MARKETING TEAM - POSITIVE REBUTTAL all competitor spread negative activity about Tata Nano
  22. 22. RELATIONAL VALUE Change in Product Extra Speed Achieve Timeline Service
  23. 23. TATA FIRST DELAYED THE NANO LAUNCH 22 MONTHS Tata Motors announced in 2006 that the Nano would be manufactured in Singur, West Bengal. Local farmers soon began protesting the forced acquisition of their land the new factory entailed. Tata first delayed the Nano launch and later decided to build the car in a different state, Gujarat, instead.
  24. 24. 4 QUADRANTS EMOTIONAL VALUE FINANCIAL VALUE RELATIONAL VALUE PERFORMANC E VALUE
  25. 25. CONCLUSION The failure of Tata Nano present with a great lesson for all the marketers the car was positioned as a symbol of social liberty and equality. It was positioned as dream car of common man of India. It was targeting the laymen who want to have a car and it got successful to some extent but only till a functional level. The Nano made sense in terms of a social mission, on a purely functional level. Good quality engineering focused on the task of making something reliable and safe as cheap as possible. Sell it to people with not much money. But it has been criticized all around as the one to the greatest positioning blunder as even the most cost effective producers do not label their products as cheap. Here the cheap has a great social connotation and the social tag because nobody aspires to buy the cheapest thing on the market, and driving around in a car is as big a statement as you get to make. Human psychology is that the motivation behind buying isn't to have a car, or a shampoo, or whatever the product is. If a product is positioned as poor‘s product then poor people will definitely avoid it because they don‘t want to be viewed as poor yet. The marketer just need to place their product right in the minds of customer and the brands like Armani, Raymond‘s, Toyota and even other brands of Tata are examples of that. So positioning remains the main mantra behind the success of any product.

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