Case: Positioning the Tata Nano

1. What Sales goal for the Nano you will recommend?

Since the Nano cars ' manufacturing capacity is restricted for 2 years to 50,000 per annum. During that
period, the sales goal should be set at 50,000. Once the Sanand plant is prepared, Tata Motors will be able
to generate more amounts.
The total population is 1.1 billion and 5 percent of the population is middle class with the capacity to
spend 2 to 10 lakh disposable income.
5% of 1.1 billion = 5.5 Crore Approximately
Considering 25% of 5.5 Crore (~ 1.3 Crore) has disposable income of 2 to 4 lakh.
Even if 10% of 1.3 crore is considered the market size for the car is around 13 Lakh vehicles.
Therefore, Y1 – 50,000; Y2 – 50,000; Y3 – 2 Lakh etc.,

2. How will you position NANO to achieve that goal?

 Nano should be marked as a car for people and should have the highest value for money
 As an option to the compact cars currently in use
 Newer car rather than second hand cars
 Safety and vehicle status for expensive two-wheeler drivers
 First time Car buyers and students

3. Why is the recommended positioning strategy superior to other positioning strategies that might
reasonably be considered?
Positioning the Nano as the cheapest vehicle not just for wealthy, would be a significant approach.
Although this approach seems clear on the ground as the typical family of 4 would like to prevent the inco
nvenience of traveling on two wheels. This could have a significant impact on the factor of status symbol,
as the family would like to wait a few more years to save more cash and purchase a more costly vehicle.