Case Study Tata Nano

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Tata Nano wanted to bring in a cheap car into the market which would be affordable for the middle income level consumers, due to which it started cutting cost of manufacturing the car.
There were several assumptions made:
H1: The designers of the car assumed that the car was compact and easy to handle, and that was the reason handbrakes were not provided, this was even done to further cut down the cost.

H2: Pricing-Nano is priced at a range where it is too expensive for the lower middle class and too shabby for the upper middle class. The class in between always looks to the upper class & upper middle class, and thus avoided altogether. The company assumed getting a car at just 1lac rupee can get more number of buyers without assuming the average salary, and net income of the middle income level consumers.
H3: Aspirational-Tata made it look
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Her case focuses on how the initial strategies for launching and positioning Tata Nano as a “People’s Car” backfired and its shortcomings and mistakes that led to the wrong positioning of Tata Nano as “Worlds Cheapest Car”. The consumers did not find pride in owning the cheapest car, it brought down there social status in the society. In India owning an expensive car is still a luxury. The reasons for Nano getting wrongly positioned was the failure of its primary positioning strategy that is its Price Positioning Strategy Tata Nano was positioned on the price attribute dimension and was widely publicized as the world's cheapest car. Now if the consumers brought the car there was the inherent danger of being viewed by his social group as poor as they were owning a car that is thought off as cheap. The actual market realty is that the car which was supposed to be a game changer has miserable failed to take off, in spite of the massive hype and the goodwill of Brand

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