What went wrong in five p’s of marketing

of tata nano
Product
Model:-

Tata nano was initially positioned as the lowest price car in india but the case is
not so the top model of tata nano would cost almost equal to the lowest
model of alto.

So why would people prefer to buy nano which is under so much controversy

The car has achieved its low price by minimizing costs on unnecessary
“luxuries”, the basic Nano comes without front and rear fog lights, without a
heater or air conditioning, without anti-lock brakes, only one single windscreen
wiper, manually operated windows, manual steering with no air bags, tiny 12”
wheels, plastic body parts joined with adhesive instead of more conventional
metal and welding and a two cylinder 623 cc engine that provides a massive
maximum speed of 65 mph (around 105 km/h).

But when would be available from alto in almost same range that people
would definitely not purchase nano perse

Among the features of the car are:

Fuel-efficient engine

The People’s Car has a rear-wheel drive, all aluminium, two-cylinder, 523 cc, 33
PS, multi point fuel injection petrol engine. This is the first time that a two-
cylinder gasoline engine is being used in a car with a single balancer shaft. The
lean design strategy has helped minimise weight, which helps maximise
performance per unit of energy consumed and delivers high fuel efficiency.
Performance is controlled by a specially designed electronic engine
management system.
All these thing has drastically reduced the weight but the quality has also been
compromised so it is loosing faith in the minds of people after the smoke and
fire problem which arised due to dust going into exhaust of gasoline.

Meets all safety requirements

The People’s Car’s safety performance exceeds current regulatory

requirements. With an all sheet-metal body, it has a strong passenger
compartment, with safety features such a s crumple zones, intrusion-resistant
doors, seats belts, strong seats and anchorages, and the rear tailgate glass
bonded to the body. Tubeless tyres further enhance safety.

All safety features are available in other cars but since nano has done to
reduce the weight it has to do something more so that the light vehicle is not
so prone to fire and tata nano failed to do so.

Environment-friendly

The People’s Car’s tailpipe emission performance exceeds regulatory

requirements. In terms of overall pollutants, it has a lower pollution level than
two-wheelers being manufactured in Malaysia today. The high efficiency also
ensures that the car has low carbon dioxide emissions, thereby providing the
twin benefits of an affordable transportation solution with a low carbon
footprint.

All these had lead to environmental friendly car but the fire problem is raising
questions in the minds of people that how friendly is tata nano actually.

Pricing
Tata nano had marketed itself as to produce the cheapest car till now in india
but the lowest model of tata nano is cheapest but as we go higher to upper
model their cost is similar to alto car. Alto has more features and no
controversy as nano has. So people would definitely prefer alto over nano
There aws time when sales of nano had rised but that was due to some car
lovers who already had cars and want to try nano too

But those people for whom tata nano is already targeted would definitely like
to buy good by giving some more amount so they come to conclusion as to
why not buy alto with same price.

So even pricing of nano is not proper to reach the targeted audience

Promotion :-
Promotion: Tata motors promote their products via Advetising and after sales
services.

Enough use of one of the most important element of promotion mix, publicity
reduces the necessity of other promotional devices for nano.

Publicity as “One lakh car” by mouth to mouth.

Auto expo 2008,New Delhi & Geneva

Publicity through print & electronic media

Singur violation.

For other type of promotional activities, cost factor that is 1 lakh price tag is to
be keep in mind, TATA is going to launch its nano mobile for indicom user,
nano watches, nano T-shirts available in Westside stores. Advertising: - TV &
other mass media will be less effective, thus too much money will not be
invested in this regard. Mainly word of mouth advertising will get more
emphasis. Internet will be a major media for advertising.

Online buzz:-Nano has gone beyond the traditional methods of advertising

and promotion online.

Official Orkut community Members - 6,906.

Official Facebook Group Fans - 4,210

Highest View Count on You Tube- 303,006 (it was just under 3,00,000 when I
began writing this post)

No. of Blog Posts - 61,664

TATA have a blog on the official website where they have been discussing
quite interesting topics and generally maintaining an active community.

In all above promotional strategies it is very clear that tata has some where
failedcto restrict its focus on the targeted people that is middle class people.
Generally midlle class people do not access net to such extent that to age
group of above 30, so the vigorous online promotion has nothing to do with
middle class segment.

Objective for promotion strategies was also to create brand awareness and
concept/knowledge of this new car – Tata Nano. This is the cheapest car

After that, our second objective is knowledge and persuasive. the aim to
create liking, preference, conviction, and purchase of a Tata Nano car

Promotion Tag line

‘Have Fun, Pay Less, get more with Tata Nano’

People wanted to purchase nano and get more but they thought they actually
get less by paying more because of price competition from alto.

Online Advertisement

First step we start before lunching Tata Nano, do the online

advertisement. Tata Nano created a Web site – www.tatanano.com – on
March 2009 to better communicate with the customers. In the Web site, was
posted the photo categories and videos to provide customers the information
and special features of Tata Nano and bring them inside the company. In
addition to photos and videos, the web site links to recent news about Tata
Nano and space for public feedback.

Besides that, Blogs have become an important outlet for word of mouth which
are regularly updated online diaries. Blogs is bringing together people with
common interests. They vary wide and can influence a vast audience due to
many internet users have read Blogs. We can establish the blog network and
carefully monitoring to find out what's on people's minds especially the
potential customers. This is a cheapest and good way to build up brand
awareness.

Television Advertisement

Television advertisement is very expensive but this is the most powerful

to perform the Tata Nano to the public by demonstrating Tata Nano attributes
and persuasively explaining their corresponding consumer benefits.

To reduce the cost they have decided to remain away from tv ads but now
they have recently started.

Place:
Tata Motors has an extensive dealer network covering Indian and
International markets. Wherever you are, there is a Tata Motors Sales and
Service dealership close to you. The channel of distribution, physical location,
and dealership method of distribution and sales is generally adopted. The
distribution of vehicle must be in a very systematic way, from the plant to
dealership and to end user. This is not only in India itself but also to the world-
wide dealership.

But the problem was that

The people of middle class who have never visited big showrooms are now
facing trouble to go to showrooms and talk to suited booted personnel of the
showrooms and this is also one of the major reasons of fall in demand.
Because people do not know as to how to respond to them or what to ask
them.
People:
Tata Motors owe success to the highly motivated and talented staff. Our
recruitment division picks the crème-de-la-crème from premier universities,
management and engineering institutes in India. They put them through
rigorous training programmes to hone their entrepreneurial skills and impart
comprehensive product knowledge.

But people were really shy to talk to these people because the middle class
families were never being exposed to such people and show room so they felt
shy to talk and approach them.

Part two:

WHAT SHOULD TATA DO, WITH RESPECT TO FIVE P'S OF

MARKETING TO SET THE SYSTEM /TATA NANO IN THE RIGHT
TRACK.

Product:-
 Tata nano should reduce its price of top model that will lead to increase
the sales
 More awareness to people about safety terms of nano would be helpful
 The problem of smoke and fire can be solved by giving certificate of
safety from good institute so that people would feel free to buy

 The problem of fire and smoke is a technical problem and Tata very well
knows that the people from technical background would easily solve the
matter so recruiting such IT graduates who are very fast at responding to
the situation can really help to get out of the matter faster.
Price:-

 Since the price of alto is almost equal to the top model of tata nano so
people are reluctant to purchase nano at that rate so reducing the price
and providing the price as promised before would help increase the sale.

 The problem of proper funding to the middle class people can be solved
by making alliance with the financial institutes or establishing a
symbiotic relation with them as to they fund people at low rates and
Tata would in return recruit the graduates from that institutes like that
from ICAI.

Promotion:-
 To make Nano reach the targeted people it is necessary that people
become aware that the car is for their benefit. For that Tata would have
to reach to such people. The advertising through the print media is not
sufficient for that. So Tata should recruit people who are ready to go to
markets and make this type of people aware of what actually Nano is all
about, how it will benefit them. Going to malls and such places where
middle class people generally prefer to go and marketing the product
there will bring greater impact on the minds of the people and so Tata
should recruit MBA graduates from marketing background who would
be ready to do such marketing for them
  Marketing should be properly done as Tata is some lacking at the STP
that is Segmenting, Targeting and Positioning of the market. It is very
clear that Tata has not reached the targeted audience so Tata is failing at
proper segmenting and targeting of the people and the market. To carry
this Tata needs a good number of people from management institutes
who would study the market and then carry the STP further. So people
from management institutes or those who are good experience holder
of the Indian market for automobiles would help to solve the situation.

Place:-
 The people are shy to go to showrooms and talk to them so instead of
people going to showrooms it can be done that we approach people at
their houses and their offices and their explain them about the product
and by . By doing so they will feel free to approach the showroom and
carry the matter forward. Then they can be asked to take the test drive
by coming to the showrooms. Of course by reducing the size of
showrooms the matter will prove to be good. To do all this Tata should
recruit people who are very fluent in the regional language and are not
hesitant to approach people and talk to them. The manager should be
cogent enough to make people feel that the product is for them and the
car is of much important to them. And it would be a good investment for
them. All this can be done by recruiting smart people from tier two b-
schools who are ready to go and market Nano. Tier two graduates are
needed because graduates from tier 1 b-school, will cost high for this
work

People:-
 To do all this Tata should recruit people who are very fluent in the
regional language and are not hesitant to approach people and talk to
them. The manager should be cogent enough to make people feel that
the product is for them and the car is of much important to them. And it
would be a good investment for them. All this can be done by recruiting
smart people from tier two b-schools who are ready to go and market
Nano. Tier two graduates are needed because graduates from tier 1 b-
school, will cost high for this work