Akshay Sethi

PRCG_B

NAME

Akshay Sethi

PGID

61610387

Reflected upon:

Session 4

Session 4 Reflection

During session 3, we looked at the framework of value communication, defined into 4 categories as
follows:
1. Economic Value Communication: Search goods communicated via economic value proposition.
2. Economic Value Assurance: Experience goods communicated via economic value proposition.
3. Psychological End-Benefit Framing: Search goods communicated via psychological value
proposition.
4. Psychological End-Benefit Assurance: Experience goods communicated via psychological
value proposition.
We can link the failure of the Tata Nano to this particular framework. By all means, a car is a
symbol of status and prosperity in India. Its an aspirational product. And while one might argue that
the Nano was the cheapest car on offer, it was still an aspirational product for those graduating to it
from a two-wheeler. The car is an experience product in India, and is generally marketed using a
combination of psychological and economic value proposition, laying more stress on the
psychological part. When Maruti wanted to communicate that their cars are fuel efficient, they did it
via an advertisement showing a young sardar kid running around the house with a toy Maruti, that
never ceases to operate. They didnt explicitly mention what the mileage of any particular car was.
However, when TATA Motors launched the Nano, they quickly positioned it as the worlds
cheapest car, widely publicising how cheap it was to operate and how fuel efficient it was, rather
than focussing on the brilliant product they had made in the Nano. A product that provided room for
5 occupants, was safer than a two wheeler and fairly cute looking too. In doing so, they failed to
take advantage of the value framework, paying dearly in the process.