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Presentation of Tata Nano

The Tata Nano is a low-cost city car manufactured and sold primarily in India. While initially launched at a very low price point to attract middle class buyers, sales expectations were not met. There were several factors that contributed to the Nano's lack of success, including negative publicity over its design which did not appeal to customers, poor product placement strategy that positioned it as a cheap car rather than aspirational, and increasing competition from other small car makers. The controversy over land acquisition for the Nano factory in Singur also generated significant negative attention.

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Poushali Choudhury
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153 views9 pages

Presentation of Tata Nano

The Tata Nano is a low-cost city car manufactured and sold primarily in India. While initially launched at a very low price point to attract middle class buyers, sales expectations were not met. There were several factors that contributed to the Nano's lack of success, including negative publicity over its design which did not appeal to customers, poor product placement strategy that positioned it as a cheap car rather than aspirational, and increasing competition from other small car makers. The controversy over land acquisition for the Nano factory in Singur also generated significant negative attention.

Uploaded by

Poushali Choudhury
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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The Tata Nano is a city

car manufactured by Tata


Motors currently made and sold
primarily in India. The Nano was
initially launched with a price of
one lakh rupees or ₹100000 which
has increased with time. Designed to
lure India's burgeoning middle classes
away from motorcycles, it received
much publicity, but the sales
expectations were not met
 Looking at the ‘looks’ factor: The average Indian is more concerned
about looks, The design of the Tata Nano did not go down too well
with the target Indian consumer, who concentrate more on how
something ‘looks’. Low pricing notwithstanding, the average Indian
wanted a car that his neighbour would envy. That didn’t quite happen
with the Nano.
 Negative publicity & failed PR management: Another major issue
faced by Tata Nano was the negative publicity which seemed to
overshadow it. The PR cell at Tata could not do enough to contain the
collateral damage done by the spiraling negative publicity, which was
one of the reasons Tata Nano did not take off.
 Increasing competition of second hand car market: The small
car industry in India has seen a sudden boost. Datsun with its
Redi-Go, Hyundai Eon, Renault A-Entry are some of the
smaller cars that are all set to take the Indian market by storm,
which definitely is another blow to Tata Nano
 Engineering marvel gone wrong? According to an IBEF report
Tata Motors were pioneers in revolutionising the supply chain
by making partners of Bosch and Delphi in the Tata Nano
innovation. However, though the Tata Nano was lauded to be
an engineering marvel at one level, on the other it seemed to
have gone wrong. There was much that the Nano lacked, such
as poor air bags, space for child-seats, etc.

 Expectation versus reality: The Indian audiences had expected a wonder car
which would be affordable to their pockets and give their image a boost.
However, the requirements of the Indian middle-class was not met by Tata
Nano: an average family of four had difficulty fitting in the car; there was no
boot-space , the car was not meant for the rough Indian roads – which all
went down very negatively into the Indian psyche, and hence the lack of
acceptance of Tata Nano. The Tata Nano target segment was the tier 2 and
3 cities where the condition of the roads is not at all desirable, and the safety
factor of the car was heavily compromised. People with large families also
were unhappy with the leg and boot space, and the extreme lightweight of
the car.
 Problem of product placement: Every individual
aspires to be something more than he is currently is.
The same is true for the average Indian. Tata Nano,
by positioning its car for the largely rural areas and
placing it as ‘everyman’s car’ made a big mistake – as
people did not necessarily want something ‘cheap’ but
something that is more ‘aspirational.’ It is here that the
Tata Nano went terribly wrong.
 SINGUR TATA NANO CONTROVERSY.

Tata Nano Singur Controversy refers to the controversy


generated by land acquisition of the proposed Nano
factory of TATA Motors at Singur in Hooghly
district, West Bengal India.
Singur gained international media attention since Tata
Motors started constructing a factory to manufacture
their $2,500 car, the TataNano at Singur. The small
car was scheduled to roll out of the factory by 2008.

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