PRODUCT AND BRAND MANAGEMENT

PROJECT WORK
FINAL SUBMISSION

TATA - NANO
Submitted to Prof. Anita Goyal
By Group 3, Section B
Abhay Vig (WMP09059)
Gaurav Bhati (WMP09079)
Prateek Raizada (WMP09097)
Ranjit Kumar Das (WMP09101)
Shweta Rastogi (WMP09109)

Submission Date: 28/04/2015

Table of Contents:
Question 1) 1. Organizational Background.....3
a. History of the company...4
b. Description of the product.5
Question 2) 2. Product fit with the existing product portfolio...7
a. Rationale behind development of Tata Nano..9
b. Nanos place in existing product portfolio....9
c. Nanos target segment...9
d. BCG Matrix Analysis for Tata Motors..11
Question 3) 3. Nano Vision: A disruptive innovation of India..12
a. Price...12
b. Product development process..12
c. Promotion..13
d. Place/ Reach.13
e. Design...13
f. Newness Map..14
Question 4) 4. Completive Advantage..14
a. Cost Leadership..14
b. Need Metric Matrix..14
c. Benefits/ Value Offering...16
d. Competitive Benchmarking of Nano.16
e. Tabular comparison with Maruti 800..17
Question 5) 5. Launch Strategy.....18
a. Classic Example........19
b. Marketing Strategy.....19
c. Communication during Launch...20
i. Brand Prism....21
ii. Brand Elements.21
iii. Brand Essence...22
iv. Brand Positioning...22
v. Ad Campaigns during Brand laddering...22
Question 6) 6. Critical factors leading to product launch failure......25
c. Marketing Strategy..25
d. Design Issues....25
e. Positioning problem.25
i. Positioning Strategy.....26
ii. Failure of Positioning Strategy...26
f. Strategies for Revival...28
g. Re-positioning Strategy..29
h. Positioning typology for automobiles..29
i. What could have been done? ...30
References.......31
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Q1. Describe organizational background / history in brief of the chosen company and
describe the product.

1. Organizational Background
Tata Group
Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise headquartered in India,
and comprises over 100 operating companies, with operations in more than 100 countries
across six continents, exporting products and services to over 150 countries. The revenue of Tata
companies, taken together, was $103.27 billion (around Rs.624,757 crore) in 2013-14, with 67.2
percent of this coming from businesses outside India. Tata companies employ over 581,000
people worldwide.
Each Tata company or enterprise operates independently and has its own board of directors and
shareholders, to whom it is answerable. There are 32 publicly-listed Tata enterprises and they
have a combined market capitalization of about $132.9 billion (as on 19th March 2015), and a
shareholder base of 3.9 million. Tata companies with significant scale include Tata Steel, Tata
Motors, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata
Teleservices, Titan, Tata Communications and Indian Hotels.
In tandem with the increasing international footprint of Tata companies, the Tata brand is also
gaining international recognition. Brand Finance, a UK-based consultancy firm, valued the Tata
brand at $21.1 billion and ranked it 34th among the top 500 most valuable global brands in their
Brand Finance Global 500-2014 report.
Source: http://www.tata.com/aboutus/sub_index/Leadership-with-trust;22/03/2015

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1.1 History of the Company

Tata Motors Limited
Tata Motors is Indias largest automobile company, with consolidated revenues of INR 2,32,834
crores (USD 38.9 billion) in 2013-14. It is the leader in commercial vehicles in each segment, and
among the top in passenger vehicles with winning products in the compact, midsize car and
utility vehicle segments. The Tata Motors Groups over 60,000 employees are guided by the
mission to be passionate in anticipating and providing the best vehicles and experiences that
excite our customers globally.
Tata Motors has operations in the UK, South Korea, Thailand, South Africa and Indonesia. Among
them is Jaguar Land Rover, acquired in 2008. In 2004, it acquired the Daewoo Commercial
Vehicles Company, South Koreas second largest truck maker. The rechristened Tata Daewoo
Commercial Vehicles Company has launched several new products in the Korean market, while
also exporting these products to several international markets. Today two-thirds of heavy
commercial vehicle exports out of South Korea are from Tata Daewoo. In 2006, Tata Motors
formed a 51:49 joint venture with the Brazil-based, Marcopolo, a global leader in body-building
for buses and coaches to manufacture fully-built buses and coaches for India the plant is
located in Dharwad. In 2006, Tata Motors entered into joint venture with Thonburi Automotive
Assembly Plant Company of Thailand to manufacture and market the companys pickup vehicles
in Thailand, and entered the market in 2008. Tata Motors (SA) (Proprietary) Ltd., Tata Motors'
joint venture with Tata Africa Holding (Pty) Ltd. set up in 2011, has an assembly plant in Rosslyn,
north of Pretoria. The plant can assemble, semi knocked down (SKD) kits, light, medium and
heavy commercial vehicles ranging from 4 tonnes to 50 tonnes.
In January 2008, Tata Motors unveiled its Peoples Car, the Tata Nano. The Tata Nano has been
subsequently launched, as planned, in India in March 2009, and subsequently in 2011 in Nepal
and Sri Lanka. A development, which signifies a first for the global automobile industry, the
Nano brings the joy of a car within the reach of thousands of families.
Source: http://www.tatamotors.com/about-us/company-profile.php;22/03/2015
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1.2 Description of the Product

Tata Nano
My first doodle was to rebuild cars around the scooter, so that those using them could be safer if
it fell. Could there be a four-wheel vehicle made of scooter parts? I got in touch with an industry
association and suggested that we join forces and produce what, at that point, I called an Asian
car: large volumes, many nations involved, maybe with different countries producing different
sets of parts Nobody took the idea seriously, nobody responded - Ratan Tata
In 2003, a four-member team from Tata Motors was asked to work on a new project. The brief
was very fluid. "It began as an advance engineering project. The idea was to try and create a
very low cost transportation with four wheels it was not even defined as a car," says Nikhil A
Jadhav, industrial designer, INCAT, who has been working on the project since its inception.
"What was defined was the cost: Rs1 lakh, about $2,500 (at the time the smallest car in India
cost around Rs2.5 lakh), without compromising on aesthetics, value to the customer, or safety
and environment requirements," says Jai Bolar, senior manager (development), ERC, and a
member of the initial team. The project was a herculean challenge indeed:

Source: http://www.tata.co.in/article/inside;22/03/2015
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Today Tata Nano's technical specifications rival those of cars in its segment. And the new Tata
Nano Twist takes it to the next level! Powered by a 624cc, multi-point fuel injected, water
cooled, naturally aspirated, 2 cylinder gasoline engine with 2 valves per cylinder, mated to a 4speed manual transmission, producing 38PS power and 51 Nm torque, the Tata Nano Twist
remains India's most fuel efficient petrol car with a mileage of 25.35 kmpl as certified by the
Automotive Research Association of India (ARAI). For more on the equally awesome
specifications of the Tata Nano Twist, The Tata Nano Twist is available in 2 variants XT and XE.

The current variants in market include 2013 CX , 2013 LX, Twist XE , Twist XT ,CNG XM ,and
variants to be launched soon include Diesel , AMT , Hybrid .

Source:http://www.tatanano.com/nano-twist-technical-specifications.html;22/03/2015

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Q2. How this new product takes its place in the existing company product portfolio?

2. Product fit with the existing product portfolio

Tata Motor offers following automotive product lines:
1. PASSENGER CARS- TATAs passenger cars include :
(a) Micro car-Tata Nano,
(b) Compact Cars Indica eV2, Vista
(c) Mid-sized cars Manza and Indigo eCS.
They have expanded their passenger car lines by introducing several variants to suit
different customer preferences.
2. UTILITY VEHICLES- TATA MOTORS manufactures a number of utility vehicles, including the
Sumo, and the sports utility vehicle, the Tata Safari and the lifestyle pickup, the Xenon XT.
The Sumo, the Safari and the Xenon XT have variants to meet different consumer
preferences such as the Safari DICOR 2.2 VTT range, powered by a new 2.2 L Direct Injection
Common Rail (DICOR) engine and the Sumo Grande, an SUV with the comforts of a family
car. They have unveiled Aria, their next generation of premium SUV powered by a 2.2 L
DICOR engine at the Auto Expo 2010.

3. SMALL & MEDIUM COMMERCIAL VEHICLES: This category consists of a variety of light
commercial vehicles, or LCVs, including pickup trucks, trucks and buses with a GVW (Gross
Vehicle Weight) of between 0.7 tonne and 7.5 tonnes. This also includes the Ace, Indias first
indigenously developed mini-truck with a 0.7 tonne payload, the Magic, a passenger variant
for commercial transportation developed on the Ace platform, and the Winger.

4. MEDIUM & HEAVY COMMERCIAL VEHICLES: TATA MOTORS also manufactures a variety of
medium and heavy commercial vehicles, which include trucks, buses, dumpers and multiaxle vehicles with GVW of between 9 tonnes to 49 tonnes. In addition, they manufacture a
range of high horsepower trucks ranging from 220 horsepower to 500 horsepower, including
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dump trucks, tractor-trailers, mixers and cargo vehicles. During fiscal 2010, we unveiled a
new range of trucks, referred to as the as Prima line.

Fig. Tata Motors Product Portfolio

Source: Tata Motors Investors Presentation Available at: www.tatamotors.com/investors
[Accessed: 3rd December 2015]

Fig. TATA Motors market share in various categories FY-2008-10

Source: Corporate Sustainability Report, 2009-10

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2.1 RATIONALE BEHIND DEVELOPMENT OF TATA NANO:

All the bigger car makers were concentrating on developing bigger, sturdier and more
powerful cars, because that is where the demand was. In most developed car markets, even
the small car (hatchback) was no longer a sub-1,000 cc car, but a more powerful 1-litre (1,000
cc), if not 1.4-litre engine. Smaller automobile companies like Tata Motors or the French
automaker Renault had little option but to develop low-cost cars to grab global attention. No
automobile company today can survive with presence in one single market alone. You have to
go global. If Tata Motors wants to be at the forefront of the global automobile scene, it has to
take the fast-track route to progress. Tata Nano could easily put Tata Motors on a global
platform as worlds cheapest car manufacturers.

2.2 TATA NANOS PLACE IN EXISTING PRODUCT PORTFOLIO

Tata Group introduced the revolutionary Tata Nano in January 08. This created an immediate
stir among Indian Consumers. Even before its Launch, it was dubbed as Car for Masses The
Peoples Car. However, low Price of the car was one of the crucial factors. Deriving sales from
Bottom of the Pyramid, launch was successful and was overbooked by almost 200%. Globally
car is positioned as The Worlds Cheapest Car, which does not compromise quality, safety and
environment.
Given the low Profit margin, critiques initially questioned the Price Target of INR 1 lakh. They
questioned the overall strategy of the launch. Questions were raised over the safety of the car.
However, the unprecedented hype of Tata Nano within the Indian Masses ensured the smooth
launch of Tata Nano. Tata Groups formidable Marketing & Distribution Muscle, ensured that
small cars are going to flood the Indian Roads.

2.3 TATA NANOS TARGET SEGMENT

Nano aims to carve out a niche segment for itself in the Indian automobile industry. Indias
burgeoning small car market holds huge potential. The booming economy and the accelerated
growth of lower middle class were expected to generate very high demand for small cars in
the near future.
The closest competitor in the 4-wheeler segment was Maruti 800. Maruti 800 was slowly
moving out of the market after ruling the small car segment for more than two decades. Its
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price was higher (>2.3 Lakhs) compared to Nano. Also the Maruti 800 has flooded the Indian
roads for a long period and people are weary of its looks and functionalities.
The other major competition for Nano comes from 2-wheelers. Most of the young people,
students and lower and middle income families currently depend on 2-wheelers for their day
to day activities. Primary reason for this is the lower initial cost and lower maintenance cost.
Motorcycles such as Bajaj Pulsar have snatched the attention of the youth market, while Hero
Hondo motorcycles have been the favorites for family users.

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2.4 BCG MATRIX ANALYSIS FOR TATA MOTORS

In the current scenario if we see complete segment share then passenger cars are having more
than 70% share, UV/MUV is the second largest segment with 19% and van is the smallest segment
with 7%. Right product mix at the right product position could increase this segment presence.

Source: Autobei Consulting Group Report,2014

Fig. BCG MATRIX ANALYSIS FOR TATA Motors

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Q3. Analyze the degree of innovation or type of innovation for this new product? How
this new product differs from existing products, if the company has other
brands/products in the same product category?

3. NANO Vision: A Disruptive Innovation of India

Tata Nano is the worlds cheapest car. In order to achieve this very low price, Tata Motors reduced
the production costs by focusing on a strictly low-cost-design. Since 90% of future growth in the car
sector will take place in emerging and developing regions Tata is now in a pole position to
conquer a major future growth market: low-price cars.
The Nano incorporates many innovations, which together make it huge:

3.1. The target price itself became the source of innovation:

The big names in the industry just rubbished it as false claims and commented that it was
impossible to make a CAR at that price. However, this was made possible through series of
innovative ideas which led to acquisition of 37 patents by Tata Motors.

Engine was packaged on the rear side.

2 cylinder engine (conventionally there are 3-4 cylinder engines)
Identical handles and mechanisms for left and right side doors
Instrument cluster in the middle of the dashboard
Unconventional seats
Interior space was maximized by pushing wheels to the corners
power train below the rear seat
Dimensions L: 3.1m, W: 1.5m, H: 1.6m
Weight reduced by 2 Kg. Cost reductions 200 Rs. And in line with modern vehicles
4 Speed Manual Gear Box
and many more

3.2. Product development process:

1. Institutionalized Stage Gate process in the organization is a benchmark in itself and ensures
development of right product for the market and also an effective and efficient program
management.
2. Transition from in-house product development to a collaborative product development, utilizing
the capabilities of suppliers, design houses, subsidiaries and associate companies specializing in
different verticals.
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3. Stages:
i. Idea generation: A safe, affordable, all-weather form of transport for a middle class family. Need
identification through Kanos Model.
ii. Idea Screening: What idea should be acted upon!
ii.1. A scooter with two extra wheels at the back for better stability?
ii.2. An Auto-rickshaw with four wheels?
ii.3. A three wheeled car like a closed auto- rickshaw??
iii. Concept Generation and Development: Drivers of three-wheelers are looked down upon in
India. Four wheels had emotional, not just practical, appeal. The car to cost Rs. 1 lakh on road. The
car should be built on a different platform than conventional ones.

3.3. Promotion:
Innovation lies in reaching the right customers always and communicating in a simple and
effective manner. Tata Motors in case of Nano developed a portal which got as high 30 million
hits even before the launch of the car. After the launch there were another 30 million hits in less
than a month. This helped the customers in becoming more aware of the product features.

3.4. Place/ Reach:

Conscious of the fact that demand for such cars would be substantial from the remotest corner of
the country, the sale of form for booking were facilitated through several banks. New insurance
schemes were co-designed with the insurance companies.

3.5. Design:
Further, Nano uses a modular design that enables a knowledgeable mechanic to assemble the car
in a suitable workshop. Thus, Tata can outsource assembly to independent workshops that can
then assemble the car on buyers orders. This innovation not only removes costly labor from the
manufacturers side but also allows for distributed entrepreneurship on the dealers side.
The low cost of the Nano comes from a combination of its exclusion of frills and luxuries and its
inclusion of numerous lighter components, from simple door handles and bulbs to the
transmission and engine parts. The lighter vehicle enables a more energy efficient engine.
Nanos novel design incorporates a much smaller footprintat 122 inches long, its one of the
shortest four-passenger cars on the marketyet it allows for ample interior space.

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The final Product developed:

Had sufficient Space inside to accommodate 4 persons comfortably.
Highly fuel efficient
Meets the current Safety requirements
Complies with the current emission requirements.

High

TATA NANO

Low

Newness To Company

3.6 NEWNESS MAP:

Low

High
Newness to Market / Consumer

The market completely expected a new concept in the form of the worlds cheapest car. The
company was already into manufacturing cars earlier. However, TATA nano was a relatively new
concept for the company as well with series of innovation incorporated to develop the car.

Q4. Does this new product have competitive advantage and provide value to customers.
Explain with reasons.

4. COMPETITIVE ADVANTAGE
4.1 Cost Leadership: The value or the perceived benefits per unit perceived cost is high. However,
the faulty positioning strategy in automobile segment seems to overshadow the advantage of cost
leadership.

4.2 Need Metric Matrix:

To provide value to its target segment & satisfy the needs of its customers Tata Nano had to deliver
on several interdependent key metrics. Further the product specifications had to be at par or better
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than competition & should meet the regulatory safety and emission norms as well, while still
maintaining the initial vision of an affordable common man car.

Fig. A typical lower-middle class family in India travelling by a scooter.

The following points illustrate how Tata Nano achieved it:

METRIC
NEED
Safety
Comfort
Fuel Efficiency
Affordability
Reliability
Environment Friendly

Tyre
Body Material Car Dimensions Engine Design
Material

Brake
Type

Seat
Design

Safety &
Unit Manf.
Emission
Cost
Tests

Fig. Need Metric Matrix for Tata Nano

Safety: By adhering to fact that less weight requires less power, Nano is made of light weighing
steel but without any compromise on safety and performance. With an all sheet metal body, it has
a strong passenger compartment, with safety features such as intrusion resistant doors, seat belts,
strong seats & anchorages etc. Tubeless tires further enhance safety. Tata Nano passes all the
safety tests required in India including full frontal crash, roof crush, side door intrusion for doors,
etc.

Fuel Efficiency: Nano has rear wheel drive, all aluminum, two cylinder 624 cc, and multi point fuel
injection engine. The lean design strategy helped to minimize weight, which helps maximize
performance per unit of energy consumed and delivers high fuel efficiency.
Further, Nano has a back mounted engine, pushing the luggage space to front. This makes the
engine closer to the fuel tank leading to increased fuel efficiency. Rear mounted engine also helps
to reduce power loss during transmission.
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Affordability: Tata Nano was launched with a price tag of INR 01 Lakh This price tag was almost
half the price of the current cheapest car in India, Maruti Suzuki 800, which was priced around 2
Lakhs. Tata Nano was ideal for two-wheeler owners looking forward to switch to 4 wheelers. Its
also suitable for women, who would find driving a car safer than driving a scooter.

Comfort: Tata Nano has 21% more interior space than the Maruti 800 even though it is 8% shorter
in length. The passenger carrying capacity of this car is four - 1 Driver plus 3 passengers. Nano is
well insulated for Noise, Vibration and Harshness with heat shields. This prevents the rear seat
from getting heated even with a rear engine.

Environment Friendly: Tata Nano emits less carbon than two-wheelers. It also meets emission
norms of BS II, III, and IV which are Euro II, II, IV equivalent.

Reliability: The Nano comes with an unmatched manufacturer warranty of 48 months or 60,000
km, whichever comes earlier. Above this one can also purchase an extended warranty package
from his/her dealer.

4.3 Benefits/ Value Offering compared to other means of city transports:

Tata Nano is much better than most of the other means of city transport in many ways:

Compared to a scooter it provides more comfort, protection & safety for entire family.

In comparison to taxis in India it is much cheaper.

In comparison to auto rickshaw it is more comfortable and has better speed which saves
time. Nano has better energy efficiency and lower emissions compared to other cars &
auto-rickshaw, which is good for environment too.

4.3.1. Competitive benchmarking of Tata Nano: Along with the price advantage Tata Nano's
technical specifications rival those of other cars in its segment.

The Nano has a splendid fuel efficiency of 25 KMPL (certified by ARAI) which is the highest
for any petrol car in India with the lowest CO2 emissions of just 94g/Km (certified by the
ARAI).

Tata Nano has 21% more interior space than the Maruti 800 even though it is 8% shorter in
length.

The Power-to-Weight ratio of the Nano is 63PS per tonne which is more than that of the
Maruti 800

Cost Leadership at INR 1.00 lac: The idea behind the Tata Nano itself was revolutionary. The
product was an engineering marvel without a doubt. It brought together cost, fuel and
space efficiencies in a way like no other while still retaining world-class features and a sleek

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design. True, there were a few safety issues (no air bags) and the fire incidents in a few cars.
There was also the lack of power, low stability, less boot space and small fuel tank. But all in
all, the price tag more than compensated for these.

4.3.2 Following table compares Tata Nanos product specifications with Maruti Suzuki 800:

NEED
Affordability

TATA NANO

MARUTI SUZUKI
800

1,50,000

2,31,798

3099x1495x1613 mm
2230 mm
600 kg
180 mm

3335x1440x1405
mm
2175 mm
650 kg
170mm

Wheels
Tyre size - front
Tyre size - rear
Tyre Type
Wheel type

135/70R 12
155/65R 12
Tubeless
Steel

145/70 R12
145/70 R12
Tube Type
Steel

Engine
Displacement
Power

624 cc
38 PS@5500 rpm

Torque
No. of Cylinders
Fuel Type

51NM @4000 rrpm

2
Petrol

796 cc
37ps@5000rpm
59 NM @2500
rpm
4
Petrol

METRIC
Ex-Showroom Price
(INR)

Comfort, Affordability,
Efficiency
Dimensions
Length x width x
height
Wheelbase
Kerb weight
Ground Clearance
Safety, Reliability

Efficiency, Reliability,
Affordability

Efficiency,
Affordability
Comfort, Safety

Fuel Economy
25.5 kmpl
16.1 kmpl
Seats
Folding Rear Seat
Fixed Seats
Seat Belts
Yes
Yes
Child Safety Lock
Yes
No
Environment Friendly Norms Compliant
BS4
BS3
Source for technical specification: http://www.oncars.in/compare-cars/tata-nano-standard-Vsmaruti-suzuki-800-std-bs-iii [Accessed 28.04.2015]
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Q 5) Study the Launch Strategy for the product as per available information primarily
from media news or advertisement campaigns news about Launch.

5. LAUNCH STRATEGY
Source : 1) www.campaignindia.in/Brand/tata_nano,12.asp; 27/04/2015
2) articles.economictimes.indiatimes.com Collections Tata Motors; 27/04/2015

Ratan Tata once said A promise is a promise when he launched Tata Nano in 2008. Initially it
was positioned as an affordable family car. Nano was targeted at the bulging two wheeler
segment in India. It is a well-known fact that it was for someone who was owning a twowheeler and looking to buy a car but could not afford it. So, basically, the USP of Nano boiled
down to its price. Nano is basically not a luxury car but it was believed that it could fulfil the
capacity and aspirations of the middle class, both urban and rural. They all perceive that
owning a car is a matter of pride and self-esteem. But, Nanos portrayed image of owning a
cheap car was not appreciated by the masses.
As per Mr. Tata, the need for an innovation like Nano has got to do something for the people
of India and transport. The Unavailability and poor quality of mass transport is a common
problem in India. In a two wheeler, father driving with elder child standing in front and wife
behind holding a baby is norm in this country. Thus, this is a relatively an unsafe mode of
transporting a family. Thus, with this in mind Tata Nano was created as a safer form of
transport.

a) COMPONENTS OF PRODUCT LAUNCH SUCCESS:

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b) REASONS OF A PRODUCT LAUNCH FAILURE:

5.1) CLASSIC EXAMPLE

The idea of the product was prevalent in the market, however the competitors were not able
to carry out the feasibility test. TATA came out with Nano without carrying out concept testing.
It had also failed in alpha & beta testing. Even after that, TATA decided to launch the product
in market.
A series of factors impacted the Nano, right from the Singur issue to cars catching fire to
clumsy marketing strategy .There was a bit of overconfidence at the start and not much
marketing push from the company. The hype fizzled out even before Tata Motors could
effectively roll out sizeable (number of) cars on the road.
The launch was marked by high-profile media coverage and then came a waiting period, as
expected. During the same period, Tata Motors tried various positioning and communication
strategies. Initially positioned as a replacement for two-wheelers, it moved towards a safety
platform for the two-wheeler families.

5.2) MARKETING STRATEGY:

Tata used conventional media in an unconventional manner. Nano isnt big on advertising.
There were less TV campaign, only innovative use of print, radio and other media, particularly
the web. The Tata team was working on Nano news in papers, Nano breaks on radio, Nano
messages or ticker news on TV, Online Nano games, Nano chat rooms on the Net, Nano popups on major websites and Nano conversation on Facebook, Orkut and blog spaces.

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The marketing management:

i) ONLINE STRATEGIES 1) Website: www.tatanano.com 2) Social Media: a) Blog b) Orkut c)

Facebook d) YouTube 3) Nano Game: The game by Zapak was a great move to spread word
about the car and it seems to have really worked well in doing its job. 4) Online
Advertisements: The blogosphere and Indian media sites were inundated with ads for Tata
Nano. The ads came in all shapes and sizes and were definitely noticed.

ii) OFFLINE STRATEGIES 1) Collaborations: Tata partnered with a few banks for releasing
application forms. 2) Mall Promotions: Models on display 3) Leveraging Existing Infrastructure:
Now you can find Nano merchandise (eg. Nano watches, Nano T-shirts), application forms and
demo cars in Tata Indicom, Titan, Croma and Westside stores.
The strategy adopted by Tata Motors to promote Nano was badly flawed, all the marketing
experts said in the same line. The Nano generated tremendous publicity for itself as the
"world's cheapest car". While that created headlines, it wasn't the sort of communication that
necessarily sold cars.

5.3 COMMUNICATION DURING LAUNCH:

5.3.1) BRAND:
Jean Kapferes Model:
BRAND PRISM

Source: http://fmcg-marketing.blogspot.in/2007/10/brand-identity-prism-kapferer.html; 27/04/2015

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Brand Prism Legends:

Physique: Yellow Nano in Commercials, Compactness
Personality: Traditional, Cheap Car
Culture: Innovation, Trust, Design and Convenience
Relationship: Shallow Relation- Affection, Feel Good, Quality Service
Reflection: Trustworthy, Family Values, Dependability
Self-Image: Middle class driver, Enthusiastic

5.3.2) BRAND ELEMENTS:

TATA NANO
SUB-BRAND NAME

Nano

PARENT COMPANY

TATA Motors

CATEGORY

Hatchback

SECTOR

Automobiles

LAUNCH COMMERCIAL

https://www.youtube.com/watch?v=VuTbZVulC1g

TAGLINE/ SLOGAN

The Peoples Car

Khushiyon Ki Chaabi

URL

www.tatanano.com

Logo/ Symbol

PRICE

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INR 1 Lac

5.3.3) BRAND ESSENCE:

a. Brand Function: Comfortable and affordable ride
b. Descriptive modifier: Cheapest, Compact family car
c. Emotional Modifier: Tagline Khushiyon ki Chaabi

5.3.4) BRAND POSITIONING:

STP
SEGMENT

Hatchback Segment for Middle Class

TARGET GROUP

Families belonging to middle class segment

POSITIONING

Cheapest and most Affordable Car

Product and Brand Positioning has been discussed in detail in Sec 6.3 later in the report since
it acted as a critical factor for the launch failure.

5.3.5) AD CAMPAIGNS DURING BRAND LADDERING:

Several campaigns were launched successively which tried to erase the image of Nano as a
cheap car. Some of the campaigns that were launched during the period 2010 2012 were:

1.

Khushiyon Ki Chaabi Launch ad

The launch film, shot in a heritage town called Paragpur in Himachal Pradesh, depicts the
sentiments of anticipation and joy surrounding the arrival of the Nano into a family. The entire
neighborhood is shown looking on as a man brings home a Nano, much to the delight of his
school going daughter. The ad ends on a classic Indian note as the little girl is shown putting
some of her kajal onto the car to ward off the evil eye.
While the launch film centred on bringing home 'khushiyan' (joys), the three recent films are
specifically targeted at scooter owners and convey the advantages of driving around in a car,
namely privacy, intimacy, enjoyment and convenience.

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https://www.youtube.com/watch?v=VuTbZVulC1g; 27/04/2015

2. Road to lal tippa: 2012 TVC

https://www.youtube.com/watch?v=Gj2D3taMHBE; 27/04/2015

3. Its not the destination, but journey that matters most

Following 3 films along with the above launch film evidently targetted people belonging to Tier
2 and Tier 3 towns - people who were either looking to replace their two-wheelers with a car,
or had no private transportation and thus aspire to buy their first car. The campaign was
primarily targeted at families for whom owing a car was a dream - while it partly looked to stir
those who wanted to buy a second car.
Tata Motors utilized both qualitative and quantitative research for this campaign

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http://www.afaqs.com/advertising/creative_showcase/index.html?id=26130&media=TV&type=Indian
http://www.afaqs.com/advertising/creative_showcase/index.html?id=26129&media=TV&type=Indian
http://www.afaqs.com/advertising/creative_showcase/index.html?id=26128&media=TV&type=Indian

4.

2013 Celebrate Awesomeness campaign: Current Ad

https://www.youtube.com/watch?v=Em2kbmp5KzM- July 2013; 27/04/2015

https://www.youtube.com/watch?v=fFsOd3HWuR0- January 2014; 27/04/2015

Its latest ad campaign, clearly targets the urban youth. To attract the television audience, this
commercial of one and a half minute shows youth admiring the Tata Nano. It displays vibrant
and colourful youth hits the rhythm from the beginning of the commercial. The song reflects
the happiness and enjoyment with a great meaning, if once someone listens to the song,
definitely will end up singing the song and wants to listen to it again. The phrases like
Celebrate Youness, Celebrate Kickassness, Celebrate Epicness and Celebrate Magicness are
used in this commercial which reflects the behavioral trends of modern youth. Celebrate
Awseomeness campaign is definitely expected to be remembered by the viewers for a longer
period and thus creating a better impact. This Tata Nano Commercial targets the college going
students and those who just entered the band of young working professionals.

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Notable points of the Recent Campaign:

The brief given to the agency was to speak the language of the consumers, while
highlighting the product's features including space, maneuverability, performance,
mileage, safety and durability. The campaign is a blend of emotionality and functionality.
The media mix comprised a 360 degree communication effort. Besides TV, the campaign is
utilizing print and radio branding. The digital space, specifically social media, was also used
extensively

Q6. As per your analysis what worked as critical factor in Marketing Strategy towards
success/ failure of the new product?

Q 6. CRITICAL FACTORS LEADING TO PRODUCT LAUNCH

FAILURE:
6.1. MARKETING STRATEGY: The very nature of the product created massive hype. Add to
that the goodwill that the prestigious Tata brand carries. And you should ideally have a sure
fire recipe for success. But even after two years, the Tata Nano continues to languish when it
comes to sales.
With the plant being shifted to Gujarat, there were obvious delays. Furthermore, a lack of
capacity only added to the woes as the initial demand was huge. A lottery system was used to
select buyers, but the delays as well as refunds and cancellations led to a wane in the interest.
Tata expected the initial hype and its reputation to carry the brand, but when that failed, it did
not take the necessary steps to build its sales, assuming that it would be able to sell its stock
due to limited capacity. Hence, marketing was sidelined. The restructuring only served to
escalate the problems.

6.2. DESIGN ISSUES: It doesnt look like a normal car different shape, no bonnet, and no
boot. In a market accustomed to hatchbacks, it doesnt even have an adequate hatch. The
problem of the Nano, though, is not what it is or how it looks, but that Tata Motors did not
control the communication.

6.3. PROBLEM OF POSITIONING: There are 3 major aspects of brand positioning Functional, Symbolic and Experiential; an effective positioning process should place enough
importance on all of them, though mostly one of the aspects becomes more important
compared to others depending on the product type and competitive dynamics.
The value engineering and innovation was brilliant. But it was never quite clear who the car
was for. Was it to replace a two-wheeler for commuting, was it a second car for an affluent
family or an aspirational first car for a 30-year-old, or was it for all of these people?
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The car was obviously created to target the families that travelled on two-wheelers at
great discomfort and risk. But instead of using marketing channels to reach their target
audience, Tata used social media and other non-conventional methods of marketing, probably
due to margin issues. The sales reflected this. Half of the Nanos purchased were second cars,
clearly violating the positioning which sought to transition people from two wheelers to four
wheelers. The lack of communication to the appropriate customer segment led to the
downfall.

Also, Nano was a consumer behavior assessment failure. The brand managers
positioned the car as the next upgrade for a family of four with a two wheeler. But every such
household had an aspiration to move to something better and not necessarily cheaper. Even if
the consumer was in that income bracket, he or she aspired for something cooler. In such a
case the positioning was totally wrong.
But Tata is taking concrete steps to rectify its mistakes. It has launched an extensive media
campaign with articles, television and even radio being used to reach potential customers.
With additional showrooms, countrywide campaigns and attractive incentives such as a
doubling of the warranty and low maintenance contracts, Tata is going all out with its
marketing. Most importantly, Tata has propped up its financing options with more tie-ups and
through its internal financing arm. But is it all too late as the dynamics of the market have
changed over the last two years?
Tata has a great product on hand. But it failed to communicate effectively with its target
consumer. And although it is beginning to get its strategy right, Maruti and other car
manufacturers are planning on launching cars around the same price point as the Nano.
http://mediapanther.co.in/branding/the-nano-story/

6.3.1 TATA NANO POSITIONING STRATEGY

The car was supposed to be positioned as a peoples car since it offers comfort and
affordability to every person but inadvertently it got positioned as the Poor Mans Car and
Cheap Car.

6.3.2 FAILURE OF POSITIONING STRATEGY

In some places, TATA Nano is being used extensively as a Taxi. People have felt that the Nano,
though a good car did not carry enough prestige to be a passenger car.
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And this they felt was a result of the positioning taken by the marketing managers of the
brand.

i. Indian Mindset: Because of the intense perception of class position in India, it turns out that
many poor people would rather buy a used, higher-end car than buy a Nano, which would mark
them as poor. Also because in India price serves to signal quality i.e higher price serves to signal
higher quality and lower price serves to signal lower quality to the customer.

ii. Technical Glitches: Within a few months of initial sales, technical problems were found in
the product and there were a few reports of Nano catching fire, which further weakened the
trust for the brand Nano .and people further believed that low price is because of low quality.
Thus Nano though a good car did not carry enough prestige to be a passenger car.

iii. Incoherence of Positioning Strategy with Communication Strategy

While Nano was intended by the company for the lower-end belt who are price conscious,
instead of reaching out to the intended segment .Tata Motors relied heavily on nonconventional methods like social-media: They created a special Nano website where one could
design their own Nano and play games; used social networking sites such as Facebook and
Orkut; leveraged blogs; and purchased online advertising. The online medium was hardly the
right way to sell to their target segment and the strategy failed to create buzz around the car.
The sales reflected this. Half of the Nanos purchased were second cars due to lack of
communication to the appropriate customer segment.

Iv. Incoherence of Positioning Strategy with Distribution Systems

Tata Nanos distribution system was not also consistent with its positioning strategy.
The Nano did not have a large enough dealer network in the rural areas and smaller towns
where the positioning by price was more relevant The paucity of dealer networks meant they
could not capitalize on the initial enthusiasm and interest. It was targeted at the small family
of four which owns a two wheeler and would want to upgrade to a car.

The target market knew how to buy scooters but they didnt know how to buy cars. In
India the two processes are completely different and it appears that many people were simply
intimidated to go into a car dealership. Tata doesnt sell scooters and appears to have
underestimated this issue. The distribution strategy failed to bridge the last mile to the
consumer segment that Tata Motors built this car for. Lower income customers were
apprehensive and hesitant to walk into large Tata Motors showrooms.

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6.3.3 TATAS STRATEGIES FOR REVIVAL

1. Tata Motors tried to correct its 4Ps, Firstly Tata Nano was re-engineered to fix the issues
related to the fire and customers were offered free safety upgrades for, their Nano.
2. In September 2010, Tata Nano tried to reach its target segment through electronic media
channels but the advertisements have unfortunately been featureless and catering again to the
theme of affordability.
3. TATA also placed a new and unconventional distribution system for Nano:
There is a Nano parked in every Big Bazaar outlet and the touch and feel experience has
accelerated decision-making, especially in smaller towns," The chain has 70 outlets in
smaller cities and towns. This however contributed to increase in Nano sales for a short
period of time
BTL (below the line) efforts form a major part of the campaign. Several initiatives that
reached out to and seek feedback from customers are held. This has been done especially
for those potential customers who were diffident about visiting car showrooms.
In addition to the existing 585 regular sales outlets (including showrooms and dealership
outlets), 289 special 'Nano Access Points' have been set up in Tier 2 and Tier 3 towns. Here,
potential customers could experience the car first hand and go on test drives. These access
points didn't intimidate the customers and helped override the mental block against typical
showrooms. The executives at these outlets spoke the local language and these outlets
were located far from Nano's other dealership outlets.
4. Further Tata Motors Finance (TMF) launched a special Tata Nano finance scheme, under
which a customer was able to get a loan with select documents in just 48 hours. TMF provided
finance up to 90% for the Tata Nano, at easy rates. Bank loans for Nano were made cheaper
compared to the regular fare of car finance.
Though management at Tata Motors tried to correct mistakes like promotion, distribution and
financing .It couldnt help Nano to grow and if we see in volumes Tata Nanos journey is
appalling. Since its commercial launch in March 2009, the number of Nano cars sold till
October 2013 within a span of four-and-a-half-years is over 2.41 lakh (Indian Express, 2013). So
lately Tata recognized the fact that there is a need for repositioning Tata Nano.

6.3.4 RE-POSITIONING STRATEGY

1. After four years of it commercial launch Tata Nano, decided to create a new niche for itself in
august 2013 , by managing to move away from tag like the worlds cheapest car to "smart city
car". Thus they are repositioning Tata Nano as a "smart city car" by focusing on the youth to
rejuvenate its image.
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Current Campaigns:

1. Nanolution Campaign
2. Celebrate Awesomeness

6.3.5 POSITIONING TYPOLOGY FOR AUTOMOBILES

Factor/strategy name
Visual artistic

Statements
Exterior styling, fashionable, express personality, styling,
superior, makes statement, elegant design, status, modern,
interior styling, posh, size, color selection, aesthetics and
sporty

Contemporary features

High tech, airbags, extra features, eco-friendly, baby seat and

silence at high speed

Basic features

Safety, pickup, maintenance cost, value for money, durability,

convenience, passenger comfort, features, driving comfort,
handling, good fit and fuel efficiency
Security system, power brakes, child lock and remote lock
Brand name, reputation, name of company, popularity, leader
in
market, reliability and image consistency
After sale services, dealer network and spare parts availability

Security measures
Brand image

Dealer network and

services
Promotional campaign
Cost and finance

Trustworthy ads, promotional activities and celebrity in

advertisements
Financing period, interest for finance and price

Source: Saloni Pawan Diwan & B. S. Bodla (2011)

1. Visual artistic and basic features positioning strategy: Tata Motors have repositioned
Tata Nano by boasting of some intelligent features like:
-power steering option,
-improved interior and exterior of the car and;
-improved fuel efficiency and additional features like remote keyless entry, twin glove boxes,
and a four-speaker Amphi Stream music system with Bluetooth, USB and auxiliary
connectivity.
-The new Nano is available with new personalization kits- Jet, Alpha, Remix, and Peach.
Focusing on the youth to rejuvenate its image because, its buyer profile has been getting
younger since the launch of the 2012 edition. About 45% of the buyers are younger than 35
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years. Thus moving away from the concept of being an affordable four-wheeler, Tata Motors
is trying to increase the value for money proposition it offers to customers with the upgrades.

2. Promotional campaign positioning strategy:

i. Considering the young buyers Tata Nano have this time ensured that the Promotional
campaign is relevant to the target market, Tata Nanos new campaign called celebrate
awesomeness is becoming popular among youngsters. The latest TV Commercial has crossed
5 million views on YouTube till September 2013. Everyone embodies the spirit of
'Awesomeness' in the ad with the jingle celebrating the awesomeness factor
ii. In the villages and smaller towns, the company plans to use devices such as floats to
communicate the basic values of the Nano brand such as fuel efficiency and total cost of
ownership while in metros it would continue to engage youngsters aspiring for a car that can
be customized for colour and features.
Although Tata Motors have developed proper repositioning strategies this time that will make
the product cater to a larger number of customer segments. Changing perceptions of
consumers is not so easy and it will take time. And Jack Trout, one of the worlds
leading international marketing strategists has given the Tata Motors unsolicited advice to just
kill the brand. Whether, the repositioning holds a future for the product! It will be interesting
to see in the future.

6.4 What could have been done to position the car better in the Indian market during
the launch !
1.) A dual positioning strategy one for the smaller cities and the other form in the urban areas
could have worked out.
2.) Focusing on some of the features like maneuverability- the Maruti Suzuki Alto was
positioned this way, Mileage- Maruti Zen and Performance Hyundai Verna
3.) Positioning the brand and not the Car- There could be an initial positioning of the TATA
brand rather than the car, till the marketers understood the features sought by the consumers.
4.) Focusing on special segments like Women drivers or college students as the first car- this
would have helped the TATAs create a generation of customers and keep these students in
the same family as they grow up.
5.) Understanding the consumer behavior and strategizing accordingly.

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References:
1. http://www.tata.com/aboutus/sub_index/Leadership-with-trust;22/03/2015
2. http://www.tatamotors.com/about-us/company-profile.php;22/03/2015
3. http://www.tata.co.in/article/inside;22/03/2015
4. http://www.tatanano.com/nano-twist-technical-specifications.html;22/03/2015
5. Corporate Sustainability Report, 2009-10
6. Autobei Consulting Group Report,2014
7. http://www.oncars.in/compare-cars/tata-nano-standard-Vs-maruti-suzuki-800-std-bs-iii [Accessed
28.04.2015]
8. www.campaignindia.in/Brand/tata_nano,12.asp; 27/04/2015
9. articles.economictimes.indiatimes.com Collections Tata Motors; 27/04/2015
10. http://fmcg-marketing.blogspot.in/2007/10/brand-identity-prism-kapferer.html; 27/04/2015
11. https://www.youtube.com/watch?v=VuTbZVulC1g; 27/04/2015
12. https://www.youtube.com/watch?v=Gj2D3taMHBE; 27/04/2015
13. http://www.afaqs.com/advertising/creative_showcase/index.html?id=26130&media=TV&type=Indian;
27/04/2015
14. http://www.afaqs.com/advertising/creative_showcase/index.html?id=26129&media=TV&type=Indian;
27/04/2015
15. http://www.afaqs.com/advertising/creative_showcase/index.html?id=26128&media=TV&type=Indian;
27/04/2015
16. https://www.youtube.com/watch?v=Em2kbmp5KzM- July 2013; 27/04/2015
17. https://www.youtube.com/watch?v=fFsOd3HWuR0- January 2014; 27/04/2015
18. Saloni Pawan Diwan & B. S. Bodla (2011)
19. https://nicheiima.wordpress.com/2013/08/13/tata-nano-celebrate-awesomeness-once-a-peoples-carbut-now-it-is-for-the-urban-youth; 28/04/2015
20. http://news.bbc.co.uk/2/hi/business/7957671.stm; 28/04/2015
21. http://wheels.blogs.nytimes.com/2009/03/23/tata-nano-launched-in-mumbai/?_r=0; 28/04/2015
22. http://mediacentre.tatamotors.com/PressReleasesList.aspx; 28/04/2015
23. http://www.acma.in/; 28/04/2015
24. http://www.newindianexpress.com/auto/Heres-Why-Nanos-Cheapest-Car-Tag-is-HurtingTata/2013/11/30/article1919995.ece; 28/04/2015
25. http://archive.indianexpress.com/news/nano-s-poor-show-due-to-wrong-positioning-saystata/896417/#sthash.uIJGVfLw.dpuf; 28/04/2015
26. http://timesofindia.indiatimes.com/business/india-business/Ratan-Tata-Marketing-Nano-ascheapest-car-was-a-mistake/articleshow/26588240.cms; 28/04/2015
27. http://www.firstpost.com/business/branding-expert-jack-trouts-advice-on-nano-kill-it-shut-itforget-it-1228987.html?utm_source=ref_article; 28/04/2015

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