Tata Nano Case Analysis

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Tata Nano Case Analysis
Ratan Tata, chairman of Tata Motors Ltd., hoped to raise the status of Middle class families in India by offering the Tata Nano. Expectations were increasing amongst the customers regarding the product features and its efficiency. Competitors were eagerly waiting for its arrival to find out what they were going to be up against. It had strong and convincing features and was actually a good product. Unfortunately there were too many strategic marketing problems that kept it from being as big as they thought it was going to be. We will explain the problems it met and showcase some alternative solutions that could be implemented.

Strategic Marketing Problems
Tata Nano tried to position itself in the two-wheeler
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The company should have done whatever they could to modify current facilities that could produce the Nano. Although this would lead to less production, it would make sense. They should produce less of the Nano in order to test its performance in the market. After a successful entry, plans should be made for large-scale production (a new plant). The CEO planned poorly for the future, even when the product didn’t even hit the market yet. His goal on minimal costs was his backbone for the Nano and he relied heavily on this one feature. He should have undergone more market testing for his product instead of assuming that everyone was going to go crazy for his product. He needed to come up with the proper campaign that would attract customers for additional reasons other than cost. Everyone already knows the price is extremely low, so ads should stress other qualities of the vehicle.

They need to ask themselves three questions: 1. What does our product exactly do? 2. Who is this product helpful to? 3. What parts of the country/world will accept this product?

Then use a combination of the various market segments to narrow down on an EFFECTIVE target market. Some of these may include, but are not limited to demographic, geographic, and behavioral. They were really pushing the whole “cheap” aspect in an area where the market segment is more interested in cars that symbolize a greater status. In other words, the Tata Nano is

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