Preview

Positioning in Inevitable: A Case Study of Tata Nano

Powerful Essays
Open Document
Open Document
5949 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Positioning in Inevitable: A Case Study of Tata Nano
POSITIONING IS INEVITABLE –A CASE STUDY OF TATA NANO
Natasha Saqib
Assistant Professor
Department of Management Studies,
University of Kashmir, South Campus
Email –natalie81985@gmail.com

Correspondence Address
Natasha Saqib
C/O Jamsheed Saqib
United India Insurance Co. Ltd
Divisional Office Regal Chowk
Srinagar, Jammu & Kasmir
Pincode No 190001

POSITIONING IS INEVITABLE –A CASE STUDY OF TATA NANO

Abstract
The forces of globalization and technological advancement have rendered the market place highly competitive and complex. The customer 's needs, wants and expectations are changing at an exponential rate posing great challenges to the companies. For surviving and thriving in this scenario companies need to develop effective brand positioning strategies .Positioning helps customers know the real differences among competing products so that they can choose the one that is most valuable and useful to them.This is a case study of Tata Nano, one of the most ambitious projects of Tata Motor’s, which was started in 2008. It was envisioned by the Tata Group former chairman Ratan Tata himself. The case focuses on how the initial strategies for launching and positioning Tata Nano as a “People’s Car” backfired and how management recognized its shortcomings and mistakes that led to the wrong positioning of Tata Nano as “Worlds Cheapest Car” among the segment it was created for. And how finally after four years of it commercial launch, understanding the inevitability of positioning management repositioned Tata Nano as a "Smart City Car" by focussing on the youth to rejuvenate its image. Key words: Positioning, Repositioning and Tata Nano.

1. Introduction
The global auto industry is in the midst of dramatic growth and change, the likes of which it hasn’t experienced since the industry’s inception. In 2010, a shift in the balance of power within the global auto industry occurred when the world’s emerging growth market led by China, India, Brazil,


References: 2. Atmadip Ray.(2009, Apr 9). Bank loans for Tata Nano will come cheaper. Retrieved fromhttp://articles.economictimes.indiatimes.com/2009-04-09/news/27665188_1_car-loan-nano-financing-tata-nano. Accessed on 14th August, 2013 3 4. Diana Farrell and Eric Beinhocker. (2007, May 19).Next big spenders: India 's middle classRetrievedfromhttp://www.mckinsey.com/Insights/MGI/In_the_news/Next_big_spenders_Indian_middle_class. Accessed on 28th November, 2013. 5. H. S. Adithya (2013) .Customer Perception and Behaviour of car Owners – an Empirical Study in Bangalore City .GRA - Global Research Analysis 2 (1), pp 104-107. 6 7. Jack Trout ( 2010). Repositioning.  Tata McGraw-Hill Education. 8. Kalafatis, S.P., Tsogas, M.H., Blankson, C., 2000. Positioning strategies in business markets. Journal of Business & Industrial Marketing 15 (6), pp 416-437. 9. Kapferer, J.-N. (1992) ‘Strategic Brand Management’, Free Press, New York, NY and Kogan Page, London. 13. New Nano 'Celebrate Awesomeness ' TV commercial breaks record! Crosses 5 million YouTube views in just 30 days (2013). Retrieved from: http://www.tatamotors.com/media/display-press-releases.php?id=882. Accessed on 4th October 2013. 14. Nikhil Inamdar. (2013, Nov 14). Kill ' the Nano, says Jack Trout. Retrieved from http://www.business-standard.com/article/companies/kill-the-nano-says-jack-trout 113111400655_1.html. Accessed on 27th November 2013. 15. Peter Wells (2010).The Tata Nano, the global ‘value’ segment and the implications for the traditional automotive industry Regions. Cambridge Journal of Regions, Economy and Society pp 1–15 16 18. Ravi Balakrishnan.(2012, Jan 18).Tata Nano trying to navigate perceptions rising out ofatroubledproduct.Retrievedfrom:http://articles.economictimes.indiatimes.com/2012-01 18/news/30639129_1_tata-nano-rediffusion-ad. Accessed on 5th August 2013 19 20. Tata Nano to be souped up, positioned as smart city car: Cyrus Mistry .(2013,Aug 21)Retrievedfrom:http://articles.economictimes.indiatimes.com/2013-08-21/news/41433281_1_tata-nano-cyrus-mistry-tata-motors-limited. Accessed on 5th December 2013. 21 22. Tata Nano car catches fire in Anand district. (2010, Apr 7). Retrieved from http://articles.economictimes.indiatimes.com/2010-04-07/news/27609258_1_tata-nano-car-brand 23 24. Tata Nano becomes the first Auto Brand in India to cross 3 million fans on Facebook (2013) Retrieved from: http://www.tatamotors.com/media/display-press-releases.php?id=826. Accessed on 5th December 2013 25 26. Tata Nano’s poor show due to wrong positioning, says Tata. (2012, Jan 6).Retrieved fromhttp://www.indianexpress.com/news/nano-s-poor-show-due-to-wrong-positioning-says-tata/896417/#sthash.uIJGVfLw.dpuf. Accessed on 10th January 2014. 27. Tata Motors opens Tata Nano sales in Gujarat, Andhra Pradesh, Jharkhand, Bihar, Madhya Pradesh and Chhattisgarh (2010). Retrieved from: http://www.tatamotors.com/media/display-press releases.php?id=561. Accessed on 5th December 2013 28 29. Saloni Pawan Diwan & B. S. Bodla (2011): Development of empirically based customer-derived positioning typology in the automobile industry, Journal of Strategic Marketing, 19 (6), pp 545-546. 30. Shobhana Subramanian. (2009, March 31) .The making of brand Nano. Retrieved from http://www.business-standard.com/article/management/the-making-of-brand-nano 109033100071_1.html. Accessed on 1st September 2013. 32. Swati Singh and Pallavi Srivastava (2012).The Turnaround of Tata Nano: Reinventing the Wheel , Vision: The Journal of Business Perspective 16, (1 ) pp 45–52.
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Delynn Byarsmarketing Analysis: Product Positioning
    • 1575 Words
    • 7 Pages

    Delynn Byarsmarketing Analysis: Product Positioning

    Creating a company image, brand, or new product in a given market can be difficult, and getting a target market to notice can be even harder. Whether marketing a service, a company or a person, positioning is crucial to the success of any product. Positioning of that product or service is about how to get into the mind of the potential customer. When positioning a product a company wants the customer to recognize the product was designed especially for him or her. For marketers to develop a marketing strategy he or she must use different types of analysis to determine product positioning, competitive positioning, customer perceptions, and distribution-channel…

    • 1575 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Better Essays

    Ethics and Gender Roles
    • 1132 Words
    • 5 Pages

    Ethics and Gender Roles

    In order for a particular product or service to be successful in the industry, it needs to be clearly positioned within its market. The positioning should reflect the needs of the customers as well as the position of the company in relation to competitors. Depending on the positioning, the marketing team can decide what attributes of the product to amplify in their campaigns and what steps will be required to form the proper connections to the customer. Furthermore, the position adopted by a firm also impacts brand equity, as in, the kinds of associations customers make to the product, their level of loyalty, and brand awareness.…

    • 1132 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Mba- Cim - Tata Nano Case Study
    • 1884 Words
    • 8 Pages

    Mba- Cim - Tata Nano Case Study

    Tata Motors, the General Electric of India is a conglomerate with a commanding presence in a vast industries across India and globally. In January 2008, Tata introduced to the Indian public it’s ultra cheap car “Nano”. The expected retail price for the Nano was expected to be as little as USD2,500 and would cater for the fast growing middle class segment of the Indian population. Tata Motors was set to change the face of the automobile industry in India. This was however met with some challenges, given the economic environment of India and thereby causing a delay of the launch by six months. The introduction of the “People’s car” created a new category/ trend of ultra cheap cars which then led to other auto makers following in hot pursuit to roll out their own brand of vehicles in this category.…

    • 1884 Words
    • 8 Pages
    Good Essays
    Read More
  • Good Essays

    Tata Motors Hbr Case - Profitability of the Nano
    • 1161 Words
    • 5 Pages

    Tata Motors Hbr Case - Profitability of the Nano

    A primary issue Tata must consider is the current and future profitability of the Nano. In order to determine if their strategy of entering the small car market is feasible, the influences on the industry must be evaluated. If evaluation of the industry indicates that future profitability is in question, the company must consider canceling the project, or focus on areas where Tata can influence the industry to improve the likelihood of profitability.…

    • 1161 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    How Should Tata´S Nano Go Global?
    • 497 Words
    • 2 Pages

    How Should Tata´S Nano Go Global?

    As one of the most progressive companies on earth, the Tata group has decided to take on the international motor industry. It has come up with the idea of a pocket-sized $2.500 priced automobile, the four wheeled version of the $100 computer. Its name is NANO.…

    • 497 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Tata Nano the World's Cheapest Car from India
    • 1149 Words
    • 5 Pages

    Tata Nano the World's Cheapest Car from India

    Tata Nano is a rear-engine fixed city car able to travel four adults, built by Tata Motors(India). Targeting primarily for the Indian market. The car has a fuel economy of around 26 kilometers per liter of petrol on the highway and around 23 kilometers per liter in the city riding conditions. It announced at the 9th annual Auto Expo on January 10, 2008, in New Delhi, India by TATA’s Managing director RATHAN TATA. The Nano had its commercial launch on March 23, 2009 and a booking period from April 9 to April 25, generating more than 200,000 bookings for the car. The Nano cars started sales to Indian customers after July 17, 2009 with a starting price of Rs 100,000, which is approximately equal to S$ 3,125 or US$2,232 as of March-21 2010. The dual cylinder 624cc petrol engine is an all aluminium unit and is rated at 35 BHP (5,250 rpm) with 48 NM of torque (3,000 rpm). The rear mounted engine transfers power directly to the rear wheels.…

    • 1149 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Tata Nano Case Study
    • 1412 Words
    • 6 Pages

    Tata Nano Case Study

    The case discusses the making of Tata Nano, the world's cheapest car, manufactured by India based Tata Motors. On March 30, 2009, Tata Nano was launched with an ex-factory price tag of INR 100,000 (about US$ 2000). The case explains the design and development process of TataNano. The car was the result of a five year research and development project carried out by Tata Nano development team. While developing the car, Tata Motors and its suppliers constantly made efforts to reduce the costs while ensuring quality of each and every component including engine, steering, wheels, tires, windshield washing system, gear shifter etc.…

    • 1412 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Porters 5 Force Model of Nano
    • 2575 Words
    • 11 Pages

    Porters 5 Force Model of Nano

    The Tata Nano is a rear-engine, four-passenger city car built by Tata Motors, aimed primarily at the Indian market. The car is very fuel efficient, achieving around 78mpg on the highway and around 92 in the city. It was first presented at the 9th annual Auto…

    • 2575 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Good Essays

    Tata Nano - Strategy, Impact on the Automobile Industry
    • 1100 Words
    • 5 Pages

    Tata Nano - Strategy, Impact on the Automobile Industry

    For components and systems designed in-house, Tata Motors chose suppliers with strong process capabilities who could give valuable suggestions and improvements in the designs. Nearly everything has been sourced locally and the Nano boasts of greater than 95% of content sourced locally since day 1. Tata’s suppliers were an integral part of the design and development process. Tata not only worked on its own processes but also helped its vendors innovate. Instead of annual contracts, Tata went with long term volume contracts with its suppliers, driving down the costs even further. A three-shift operation and consolidated purchasing with…

    • 1100 Words
    • 5 Pages
    Good Essays
    Read More
  • Better Essays

    Emerging Giants
    • 5734 Words
    • 23 Pages

    Emerging Giants

    company is on the road to becoming a player in the global automobile industry. M&M isn’t the only company from an emerging market that is making the world sit up and take notice. Over the past two-plus decades, waves of liberalization have all but washed away protectionist barriers in developing countries. As those nations integrated themselves into the world economy, multinational corporations from North America, Western Europe, Japan, and South Korea stormed in. Many local companies lost market share or sold off businesses as a result, but some fought back. They held their own against the onslaught, restructured their businesses, exploited new opportunities, and built worldclass companies that today are giving their global rivals a run for their money. Some emerging giants compete…

    • 5734 Words
    • 23 Pages
    Better Essays
    Read More
  • Powerful Essays

    Tata Nano
    • 2862 Words
    • 12 Pages

    Tata Nano

    The Tata Nano is a city car manufactured by Tata Motors. Made and sold in India, the Nano is the cheapest car in the world today. Before it went on sale, a price of 1 lakh (US$1,800) was widely touted. Since its 2009 debut, the price has increased. Nevertheless, the Nano remains the lowest-cost four-wheeled passenger vehicle in India.…

    • 2862 Words
    • 12 Pages
    Powerful Essays
    Read More
  • Good Essays

    103340399 TATA Nano Target Costing
    • 9578 Words
    • 30 Pages

    103340399 TATA Nano Target Costing

    This report explains the concept of target costing through the case of Tata Nano. Target costing is the process of determining the maximum allowable cost for a new product and then developing a prototype that can be profitably made for that maximum target cost figure. A number of companies--primarily in Japan--use target costing, including Compaq, Ford, Isuzu Motors, ITT,…

    • 9578 Words
    • 30 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Customer Perception on Tata Nano
    • 525 Words
    • 3 Pages

    Customer Perception on Tata Nano

    Commuting by public transport system consumes time .Therefore, to own their own vehicle is the dream of many individuals and households. Purchasing four -wheeler involves huge amount of outlay. Earlier days and in the recent past, owing a car was possible only to the people of high income group. To help middle income and low income family, Tata’s have launched Nano car at an affordable price ranging from Rs. 1, 30,000 to Rs. 1, 75,000. The car was released in the market with an intention of sweeping the market and to fulfill the dreams of the consumers.…

    • 525 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Tata Nano
    • 294 Words
    • 2 Pages

    Tata Nano

    The Tata Nano, first unveiled at the New Delhi auto Expo in 2009, was expected to change the face of automobile sector in India and expand the Indian car market by as much as 65 per cent. However what was supposed to be a game changer failed to take off miserably in spite of the massive hype and the goodwill of Brand TATA.…

    • 294 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Postioning of Tata Nano
    • 336 Words
    • 2 Pages

    Postioning of Tata Nano

    Upload Sunny Chauhan View Public Profile Recently ReadMy LibrarySocial Feed My UploadsMy CollectionsMy Stats AccountHelpLog Out…

    • 336 Words
    • 2 Pages
    Satisfactory Essays
    Read More

Related Topics