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Tata Nano -Marketing Flaw

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“In India , a middle class family would travel by scooter in the classic, death- defying Indian fashion. The father would drive with his son on the floorboard in front of him and the mother seated pillion, cradling her infant daughter in her arms. In India at that time, CARS for a young family were far out of reach and is still the same.”- Ratan Tata

Before starting the project, an extensive research was conducted by Tata Motors.
They have finally arrived at; the middle class men should have safer transportation for their families, to fill the status void felt by the middle class families and also realized that four wheels had emotional, not just practical appeal.

Tata motors initial sales projections were at about 500,000 cars per year.
The basic reason was the conviction that the target price shall redefine the 4 - wheeler segment.
If only 10% customers of 9 Million two wheeler market transit to 4- wheelers it shall amount to 50% of the passenger car market share.

Having defined the target segment clearly (Two wheelers family men), they took the wrong route to approach these customers which clearly shows the lack of CI.

Their marketing strategy was no where to find intimacy with the target customers.
Few insights from their marketing strategy,

Tata will sell its ultra cheap new car through its own retail and electronics megastores, which is Westside and Croma as well as auto dealerships .
There will be no TV campaign, only innovative use of print, radio and other media, particularly the web. Nano breaks on radio, Nano appearing in the form of messages or ticker news on TV, online Nano games, Nano chatrooms on the Net, Nano pop- ups on major websites and Nano conversation on Facebook, Orkut and blogspaces). Their basic idea was to reduce the marketing cost as much as they can, which turned to be a very costly error. First of all nano’s

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