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Tata Nano

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Submitted By bdubey
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Analysis of consumer behavior in Indian Market

The announcement of the car The expectation of the Nano car & its positioning The issues faced when the car came to the market The failure with respect to positioning The re-launch The road ahead

Indian Customer perspective

Using the Consumer or the Customer brand equity model, let’s try to look at the car from an Indian consumer’s perspective, what are the expectations:

When it comes to buying a car, usually it is seen the Indian customer looks for the following in a car;

Convienece,
Car personality,
Fuel efficiency,
Power,
Econmoic,
Smartness of car and
Status symbol.

So the primary question is whether Tata Nano was able to live up to this expectation?

Announcement

When Tato Nano was announced in the month of January, 2008 it was over hyped to be the car of every Indian. The price of Nano was said as Rs. 1 lakh or $2500, as said by Ratan Tata, the Chairman of the Tata Group at that point of time. It became a dream car for every person belonging to the lower middle class and even the lower class. However the ministry of transport also raised concerns about the congestion on roads that the car would bring in as people may start to use it regularly for their day to day transportation.

Marketing Plan

Tata Motors basically Segmented and targeted the following groups of Indian population:

1. The Middle class

Mainly the lower middle class
Upper lower class
2. Usually the two-wheeler users

3. Family with 3-4 members who have troubles while travelling on a 2-wheeler.

Tata Motors positioned the car as per the following catch lines and slogans:

1 lakh car to fulfill all your dreams! Cars are not just for the rich
Tata Nano was launched in the segment of being a cost leader in the broad market to attract maximum number of the population. We can place it in the quadrant as shown in the picture below at...

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