TATA NANO

HISTORY
Tata Motors Limited is a leading automobile company in India, with consolidated revenues of
USD 32.5 billion in 2011-12. Tata Motors is a leader in manufacturing of commercial, passenger,
military and electric vehicles. It is also the worlds 4th largest truck and 2nd largest bus
manufacturer by volume. In January 2008, Tata Motors introduced Tata Nano, dubbed as the
Peoples Car” and also known as the worlds cheapest car. The car was launched in March 2009
which created a significant impact in the Indian automobile market.

The main target group of customers for Tata Nano are the lower and middle income families in
India, many of whom resisted purchasing four-wheelers mainly due to the price affordability and
maintenance cost. Launching Tata Nano gave an opportunity for these groups to purchase a car
within their means.

The main competitors of Tata Nano are Suzuki Maruti-800, Suzuki Maruti Alto, Suzuki Maruti
A-Star, Chevrolet Spark and Hyundai Santro. Their factories are located in various part of India.

Before Tata Nano came into the market, the leading low-cost car in Indian market was the
Maruti-800, priced at around â¹ 188,988 â¹ 223,498. The car was made to cater to the higher
middle class or middle class people segment (Annual income above ₹ 300,000). The used car
market in India is also huge, forecasted to be growing at a compound annual growth rate of
around 22% from 2011 to 2014. Introduction of Tata Nano impacted the used car market in India
significantly. Used car sales dropped by 30% immediately before the Nano’s introduction into
the market. As for the new-car market, car sales of the Maruti-800 dropped by 20%.

The popularity of the small car segment in India is exemplified by market leader Maruti Suzuki,
which is projected sell about million small hatchbacks this year, attaining about 50% of the car
market share. Tata Motors market share is currently around 14%.

During the initial launch, Tata Nano was priced at about ₹ 100,000. In December 2008, the cost
of the car increased significantly due to higher raw material costs. Currently, the fixed prices of
the Tata Nano in India are as follows:

Model Price

Base Model ₹141898

Tata Nano CX. ₹ 171489

Nano LX. ₹198605

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Mission, Vision & Values

Vision
❖ “To be the most admired and responsible Integrated Power Company with international
footprint, delivering sustainable value to all stakeholders”.

Mission
• To earn affection of customers by delivering superior experience and value, thereby
making them our ambassadors.

• Driving competitiveness by operating our businesses at benchmark levels.

• Executing projects safely with predictable benchmark quality, cost and time.

• Growing profitably across the power value chain and allied areas, in focus geographies.

• Being the lead adopter of technology with a spirit of pioneering and calculated risk taking.

• Practicing 'Leadership with Care' by pursuing best practices on Care for our Environment,
Community, Customers, Shareholders, People and creating a culture that will reinforce
our values.

• Enable employees and associates to achieve and unleash their full potential to deliver
outcomes in a sustainable way.

Values
❖ Integrity

❖ Teamwork

❖ Accountability

❖ Customer focus

❖ Excellence

❖ Speed

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Tata Motors all motor vehicles

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MARKET OBJECTIVES
National growth
➢ The tata nano is a four passenger city car built by tata motorsaimed primarily at Indian
market

International growth
➢ Tata Motor's Nano car is ready to start its journey on the global road as it displayed
version of the hatchback for world wide marketplace.

➢ This international version is more powerful and stronger than itsIndian counterpart. It is
0.19 meters longer in length and is 0.08meters wider in comparison of its Indian part. The
company isaimed towards selling of Nano car in Europe for 5000 euros($6,316)).

ETHICAL OBJECTIVES
➢ Tata group had never compromised on ethics, it last year edited whistle blower policy for
the benefits of the company & society

➢ The Company believes in the conduct of the affairs of its constituents in a fair and
transparent manner by adopting highest standards of professionalism, honesty, integrity
and ethical behavior.

MARKET SHARE & FUTURE PLANNING

➢ Tata said that the initial target production volume would be 250,000cars per annum on
two shifts, expandable to 350,000 per annum onthree shifts.

➢ In earlier media interviews, Ratan Tata talked about a one millionproduction target by
2010

CONSUMER FOCUS
➢ Die Welt reports that the car conforms with environmental protection,and will have the
lowest emissions in India.

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MICRO-ECONOMIC FACTORS
❖ Demand for Tata Nano:
Consider a buyer who has two options:

A) Buy a car @ ₹200,000

B) Buy a car @ ₹140,000

Considering the demand, we may expect that the buyer choosing option B as the price is lower
and leaves the buyer with a surplus known as “consumer surplus”. The buyer can then use this
surplus for other purposes.

Then when the price is P1 [price of the other cars] the quantity demanded is Q1 [quantity with
respect to the price of the other cars]. When the price of the car is P2 [price of the car “Nano”]
quantity demanded increases to Q2 [quantity with respect to the price of ‘Nano’].

Generally while defining the negative relationship between the price of “Nano” and the quantity
demanded of it, we take the ceteris peribus assumption, where all the other variables say, taste of
the consumer, time period, prices of substitutes and complimentary goods are generally kept
constant.

Consumers would likely shift their demand towards Nano when the price of Nano is less
compared to the price of the other competing cars in the market. Hence, the demand for “Nano”
would rise and demand for the other cars would fall.

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 ❖ Consumer Surplus:
Consumer surplus is defined as the excess satisfaction that the consumer gets when he might be
willing to pay more for a product than he actually has to pay. Thus, in the present case a
consumer might be willing to pay ₹ 200,000 for any other car in the market, but he actually
pays ₹ 140,000 for the car “Nano”. So, the difference ₹60,000 is his excess satisfaction known
as consumer surplus.

❖ Producer Surplu8s:
Producer surplus is the amount that the producer would be willing to sell rather than let go a sale.

❖ Complements:
Complements are goods / products that “go together,” often consumed and used simultaneously.
An increase (decrease) in the price of one product shifts the demand curve for another product to
the left (right). Fuel / steel are complement products for the Tata Nano car. If the price of fuel /
steel goes up, demand for Tata Nano cars decreases and vice-versa.

❖ Substitutes:
Substitutes are generally goods / products where one could be used in place of the other. An
increase (decrease) in the price of one product causes the demand curve for another product to
shift to the right (left). Second hand cars (used cars) are the substitutes for the Tata Nano. If the
price of Tata Nano goes up, used cars demand increases and vice-versa.

ELASTICITY OF DEMAND:
Elasticity of demand refers to the relative responsiveness of the changes in demand to the
changes in the price or income or price of substitutes and complementary goods. The elasticity
which gives a relationship between the price of the commodity X and the quantity of commodity
Y is known as price elasticity of demand. If this concept of elasticity of demand is used in our
example, we can say that with the rise in the price of the other cars the demand falls and the
demand for the car “Nano” increases. Thus, there is a positive relationship as in our case we have
taken two commodities which are good substitute of each other.

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 ❖ Price Elasticity:
In the case of Nano, price elasticity of demand is relatively elastic (e>1) because a little increase
in its price will lead to a greater decline in the quantity demanded.

❖ Income Elasticity:
When there is an increase in income of consumers, purchasing power increases and demand for
Nano decreases.

Tata Nano is deemed an inferior product, ie. a product that decreases in demand when consumer
income rises, unlike normal products, for which the opposite is observed. Normal products are
those for which consumers’ demand increases when their income increases. Consumers generally
prefer Tata Nano when their income is constricted. As a consumer’s income increases the
demand for Tata Nano decreases, while demand of costly cars increases.

Cross Price Elasticity:

❖ Substitute:

The price of Tata Nano deliberately makes it a close substitute to some products in the two
wheeler market. Tata Nano, in a few years’ time, could adversely impact the second hand car
market and reduce the price of second hand cars by around 20 to 30% and their sale by 35%
(Reuters 2008). This could make second hand cars much cheaper, bringing them closer to the
price of two-wheelers.

❖ Type of Market:

The small car segment comprises of a few competing car manufacturers (Hyundai, Maruti
Suzuki and General Motors). The car products offered are homogeneous / differentiated. Given
the scale of production and the investment needed, barrier entry is high and costly. Hence, this
market is an Oligopoly. Tata Nano created a totally new market segment supplying to the middle
class or lower middle class sector i.e. the lower income sector. This has resulted in Tata Nano
establishing a monopoly in this sector.

The elasticity of demand for the car “Nano” is positive, which shows that for this elasticity the
total revenue is rising and marginal revenue (i.e. additional revenue accrued by selling each
Nano) is greater than zero.

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 ❖ Marginal costs:

Marginal costs help to indicate how much the total costs changes because of change in the
production level by one unit. If there are only proportionally growing variable costs, variable
costs will be equal to the marginal cost. However, when there are only fixed costs, marginal cost
will be zero. Any increase in production does not change costs.

❖ Sunk costs:

Highly specific investments are usually sunk costs. Sunk costs are irrelevant for any future action
because they have already been incurred and cannot be recovered.

Sunk costs mainly denote barriers to exit. One of the big drawbacks of the sunk cost is that,
suppose if a company sustained high sunk costs then it will have problems in deciding to exit the
market even if it sees good opportunities outside. A lot of money was spent to design and make a
prototype. These are the sunk costs incurred by Tata motors.

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MACRO-ECONOMIC FACTORS
Tata Nano sales are affected by various factors like GDP, population size to the demand for
personal vehicles, cost and availability of petrol, cost and availability of public transportation,
road density, country geography, income homogeneity, population-age distribution, population
density, etc.

❖ The Economy of India:

The economy of India is the 3rd largest by purchasing power parity (PPP) and the 11th largest in
the world by nominal GDP. The country is a member of BRICS and one of the G-20 major
economies. On a per capita income basis, India ranked 129th by GDP (PPP) and 140th by
nominal GDP in 2011, according to the IMF.

India is one of the fastest growing economies in the world, with growth of over 200 times in per
capita income in the period from 1947 (₹ 249.6) to 2011 (₹ 54,835) (Economic Times – May
31, 2011). The growth was mainly due to a vast increase in the size of the middle-class consumer,
a huge labour force, growth in the manufacturing sector and large foreign investments. India is
the 19th largest exporter and tenth largest importer in the world. Economic growth rate was stuck
at around 6.5% for the 2011-12 fiscal years.

During the last couple of years, the Indian economy has moved into higher growth. Furthermore,
demand for Tata Nano car is benefitting from India’s favourable demographic profile, which is
reflected by its very young population (50% of population under the age of 25), gradually
improving dependency ratio, growing urbanization and trend towards smaller, nuclear families.
These trends results in greater savings and better car-purchasing abilities.

Increasing GDP per capita levels is also playing its part in increasing vehicle affordability. In
India, the GDP per capita has almost doubled between 2000 and 2011, while car prices
(adjusting for the decline in duties) have stayed around the same level compared to 5 years
before, thus increasing flexibility to own cars.

❖ Political Stability in India:

An investor’s worst nightmare is, no doubt, political instability. It interrupts the flow of foreign
direct investment plans into the public sector as well as the private sector units and this certainly
upsets economic growth. There are different opinions on the political stability of India,

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depending on how one looks at it. It could collapse or prosper, depending on how the
government work together with the people for the interest of the country.

Even though corruption is prevalent in the India Government, it is politically stable as the
economic boom has created higher standards of living and stability within the region. The
government is not perceived to collapse in the near future.

❖ Interest Rate:
Rising interest rate tops the list of reasons for low consumer demand. Hence, car buyers are
affected as about 85% of Tata Nano cars are hire purchase. “Interest rates are one of the highest
we have seen in the last 7-8 years. This has affected customer affordability as many of them also
have home loans and will face a combined impact of inflation and interest rates,” says Arvind
Saxena, director, marketing and sales, Hyundai India. The 2% increase in interest rates in the
past four months affected Tata Nano car sales significantly. Presently, interest rate for car loans
is between 11.25%-17%.

❖ Inflation Rate:
Inflation always has a detrimental effect on the automobile market. Like a double-edged sword,
it affects the manufacturer/supplier and the consumer. An increase in raw material costs (steel,
rubber, etc) increases production costs for Tata Nano. Together with increase in fuel cost, these
factors render the disposable income of the consumer insufficient for the purchase and
maintenance of a car. Hence, this results in a slower rate of market development for Tata Nano.

The above graph, when superimposed together with Tata Nano sales graph shown previously,
gives a clear indication of how Tata Nano sales are affected by the inflation rate fluctuations. On
a positive note, the graph also shows inflation rate decreasing, implying a potential increase in
demand for cars in the future.

❖ Unemployment:
According to the above graph, the unemployment rate has decreased and it is at 3.8% presently.
Low employment rates result in increasing disposable income as more people are working.
Demand for Tata Nano cars expected to increase as the lower and middle income families have
higher disposable inco

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 ❖ Gross Domestic Product (GDP):
GDP is an important factor as it allows the company to estimate purchasing power in the wake of
the global crisis. Falling GDP usually means smaller purchasing power. According to Euro
Monitor International, 2009, two or more consecutive quarters of negative real GDP growth
indicates a recession. Currently India’s GDP growth rate is decreasing and this could affect Tata
Nano sales.

❖ Consumer Confidence and Consumer Expenditure:

The Indian consumer market is one of the world’s largest. This is attractive to marketers since it
implies a significant market for products. However, according to Global ratings agency Fitch
(August 2012), consumer expenditure is at its lowest in 7 years even as consumer confidence
remains high. Low consumer expenditure will reduce the demand for products like Tata Nano. A
high level of consumer confidence does not have a very profound effect on consumer
expenditure.

➢ Tata Nano Exports:

Apart from the domestic market, Tata Nano cars are exported to Taiwan, Malaysia, Sri Lanka,
Myanmar, Indonesia, Bangladesh and Nepal. There are plans to export to European, Thailand
and USA markets.

Export market for Tata Nano looks favourable as the depreciation in rupee is likely to boost
00exports. The rupee has depreciated 4.7% against the U.S. dollar this year after slipping 18.7%
in 2011.

❖ Why Tata Nano out of the market?

The launch of Tata Nano has revolutionised the Indian automobile industry. By creating the
cheapest car, Tata Motor has developed a product affordable to the masses which other
manufacturers in the world have yet to match. This is an achievement of Indian innovation at its
best.

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A couple of negative setbacks for Tata Nano:
1. In 2010, a few Tata Nano cars reportedly caught fire due to technical problems, causing
concerns on the car’s safety.

2. Nano is perceived as a poor man’s car. Punnoose Tharyan, editor of India’s Motown magazine,
commented, “A Nano is always bandied about as a poor man’s car. Nobody wants to be caught
with it.”

These factors may affect the sales of Tata Nano. Hence, Tata Motors will have to take concrete
steps to mitigate these setbacks.

As the competition in the low cost car segment increases, Tata Nano will slowly lose its
monopoly position. Using Porter’s Five Forces Analysis Framework:

➢ Threat of Entry
With predictions of good economy growths for India and increasing purchasing power of Indians,
many new automobile players will be keen to compete in the India automobile market. Bajaj
Auto, the second largest bike maker in India, recently entered the car market when it introduced
a low cost passenger vehicle.

➢ Threat of Substitutes
Bigger second hand cars are selling at the same price of a Tata Nano. Other substitutes such as
LPG/Diesel/Petrol auto rickshaws are strong alternatives. With the ever-increasing traffic and
petrol prices in India, people may prefer two-wheelers, which give almost double the mileage in
half the cost and are easy for parking.

➢ Bargaining Power of Suppliers

Raw material prices are determined by the suppliers, which affects the production cost of the
automobile industry. However, bargaining power of suppliers does not affect Tata Motors greatly
since it obtain its raw materials from a subsidiary of its parent company (Tata Steel)

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 ➢ Bargaining Power of Buyers
Given the availability of substitute products mentioned previously, buyers have a higher
bargaining power and choose something else other than Tata Nano.

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 the point of time of its launch.

With Tata Nano being launched in the Indian market it now gave the power to the common man
of India to dream to own his own car. The advertisements and media publications highlighted the
emotional quotient showing the happiness of children when they see a car coming their home
and the delight on the face of the family members who depicted a middle class group.

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The struggling India class who had a monthly salary of less than Rs.6000 per month and
constituted more than 110 million households also got the encouragement to dream of buying a
car.

Mr. Ramesh Mangaleswaran, the partner of McKinsey and co predicted that in Mumbai alone the
2 million people who rode a motorcycle everyday would now try to lift themselves up to buy a
Tata Nano.

It was also expected that Tata Nano would create a revolutionary change in the lifestyle,
specially with respect to commutation of the common man and would become a face of the
Indian lower class just like Bajaj Scooter once became for the middle class.

➢ The after launch issues

Ratan Tata kept his promise and the Indian market saw Nano ready to roll on the roads in the
month of July, 2009. At the beginning the sales for the car was very high but gradually it started
to decline on a per month basis. There are several reasons that have been figured out for a
downfall like that.

➢ Problems with the car:

• Not suited at all to be used in hilly terrains

• There were incidents of car engine catching fire and excess of heating
• Engine used to make a lot of noise and people even started comparing it with an
auto
• Interiors were dull with insufficient leg space
• The entire body of Nano was very light and would get spoilt even if slightly
bumped.

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 SWOT analysis of Tata Nano

Strengths

1. Tata Nano is available at a very affordable price

2. Easy to drive in traffic conditions

3. Innovative engineering of Tata Nano provides better facilities compared to same segment cars

4. Low maintenance and handling cost of Tata Nano

5. Good fuel efficiency goes well with Indian audiences

6. When it was introduced it created a huge buzz in the global automobile industry being a
‘common mans’ car

7. Excellent advertising of the Tata Nano car across TVCs, print media, online ads etc.

Weaknesses

1. Perceived as a cheap product which repels the aspirational customers

2. Setting up of production plant in WB caused a lot of tension

3. Limiter international presence of Tata Nano.

Opportunities

1. Tata Nano can capitalize on the fact that it is the most affordable car and acquire new
customers

2. Increasing per capita income and purchasing capability of potential customer base

3. Promoting CNG model at the earliest and attract the public passenger car segment

4. Increase international market presence especially Europe too boost Tata Nano's business

5. Augmenting the distribution and service network in various countries.

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Threats

1. Increasing fuel costs

2. Competition from other big automobile giants can affect Tata Nano's business

3. Competitive products offering same level features at a lesser price

4. Product innovations and frugal engineering by competitors

5. Customer perception of a Tata Nano as a cheap car can lead to loss of sales.

ADVERTISING STRETEGY
Tata Motors' 5 key strategies to lure youngsters towards Nano Twist

From peak sales of over 27,000 units in the January-March 2012 quarter to under 4,000 in the
three months to December 2013, Tata Motors’ Nano hasn’t quite lived up to the hype and
expectations built up since its launch in mid-2009. Former Tata group chairman Ratan Tata —
now chairman emeritus — recently said the “cheap car” image had hampered the Nano’s
progress, and earlier this week Tata MotorsNSE -2.20 % took one of its first steps to erase that
“stigma”.

It launched Nano Twist, a ‘smart city car’ with power steering, improved beige interiors, a new
instrument cluster with driver information system and a redesigned gearshift console. Goodbye
Rs 1 lakh car, or at least that perception — this variant costs just under Rs 2.36 lakh (ex-Delhi
showroom).

“With the new Nano Twist, and the Nano eMax a few months back, we have begun this journey
of a Nano portfolio that stands true to its brand essence: of a youthful, exciting car offering great
value but, at the same time, builds in a different set of features to suit differing customer needs,”
says Tata Motors managing director Karl Slym.

The attempt over the past year has been to attract youngsters. In 2012, only a fifth of the buyers
fell in the age bracket of 18-34; that share more than doubled to 55% in 2013, although it hasn’t
translated into increased sales. “The Nano needs to be aspirational rather than spartanly
utilitarian,” says Ankush Arora, senior vice-president and head commercial, passenger vehicle
business unit, Tata Motors. Here are the five prongs of the strategy to reverse the sales
downtrend:

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 ➢ Focus on youth:

To build a youthful and aspirational value around the brand, Tata Motors through its
‘awesomeness’ branding and marketing campaign worked with fashion designer Masaba Gupta
on the launch of the Twist. The makeover campaign is an attempt to get youngsters to look at the
Nano as a fashion accessory. “Young consumers wa nt complete accessorisation in the car like
alloy wheels, different interiors, spoilers and graphic designs,” explains Arora. The company
promises more on-ground activities and showcases at colleges to woo the youth.

➢ Fresh positioning:
From a people’s car and the world’s cheapest, the Nano is now positioned as the smart city car
for young achievers. Arora says while the perception of a cheap car has still not gone away, the
profile of the consumer has tremendously improved — along with the features in the car. Based
on market research, Tata Motors has segmented potential customers into first-time buyers, those
looking for a replacement or an additional car and others who want more features and
performance. Near-term plans include a variant with automated transmission to strengthen the
smart city car positioning.
“With all the significant product changes, we have a really easy-todrive car, great to manoeuvre,
with a distinct individuality and colour and offering what no car can in this price range — a great
style, entertainment and music, industry-leading power steering and more,” says Slym. Adds
Rakesh Batra, partner, national leader, automotive sector, Ernst & Young: “The repositioning
will make the product cater to a larger number of customer segments. If the value proposition is
right, it should lift volumes.”

➢ Communication for a consumer connect:

The idea is to give the brand a far more emotive personality and the new advertisement campaign
of ‘awesomeness’ is in that direction. The campaign has electronic dance music DJ Akshay Sarin,
celebrity dancer Lauren Gottleib, and professional golfer Neha Tripathi to celebrate how these
young achievers ‘live life on their own terms’. These young achievers will help create an
emotional connect with the target buyer. Consumers will get opportunities to interact online or
on-ground with the young achievers, leading to attachment to the brand, reckons Arora.

➢ Revamping distribution and reach:

The new dealer identity will make the consumer experience more exciting. The dealerships will
have better displays, video walls, trained workforce to reinforce the smart city car image and all
content will be centrally controlled. There are 95 standalone Nano dealerships and the company
has no plans to increase the number this year.

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 ➢ Changed pricing:
At its launch, much was made of the Rs 1 lakh price tag. The price points have been redefined
and the new variants of Nano are expected to priced in the range of Rs 1.75 lakh to Rs 3.25 lakh.
“A consumer is looking for the right value equation, a full package, and not a cheap car,”
explains Arora. He adds that from the three trim levels, 60% of the Nano sales were from the
power steering and AC variant. Now, armed with five trim levels, the company plans to offer
four engine options.

An electric car and a hybrid are being worked on at the company’s UK R&D base, the Tata
Motors European Technical Centre. The higher price tag allows for the Nano to be packed with a
host of features: twin glove boxes, keyless entry, a dashboard-integrated music system with
Bluetooth connectivity, a bigger steering wheel and remote central locking. By 2015, Tata
Motors hopes to be ready with a more powerful engine.

Advertising Program
Tata aims to inform
peoplethis is the cheapest car in the world and persuade people to buy Tata Nano du
e to this car is safety, useful, all in good quality andalso environment friendly by
developing an advertising program.

Online Advertisement
First step we start before lunching Tata Nano, we do the online advertisement. Tata Nano created
a Website – www.tatanano.com– to better communicate with the customers. In the Web site, we
posted the photo categories and videos to provide customers the information and special
features of Tata Nano and bring them inside
thecompany. In addition to photos and videos, the web site links to recent news abo
utTata Nano and space for public feedback.B e s i d e s t h a t , b l o g s h a v e b e c o m e a n
i m p o r t a n t o u t l e t f o r w o r d o f m o u t h t h a t i s regularly updated online diaries. Blogs
are 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 buildup brand awareness

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Television Advertisement

Television advertisement is very expensive but this is the most powerful to

performt h e T a t a N a n o t o t h e p u b l i c b y demonstrating Tata Nano attributes
a n d p e r s u a s i v e l y explaining their corresponding consumer benefits. By lower advertising
budget, we cannot do the TV advertisement in whole day, so we just choose the prime
time( 7 p m – 1 1 p m ) t o p l a c e t h e a d v e r t i s e m e n t . B y p r o p e r l y d e s i g n e d a n d
e x e c u t e d T V advertisement can improve brand equity and affect sales and profits.

Radio Advertisement

Most of the People listen to the radio daily. Now a day have many facilities such asMP3, hand
phone and so on, is convenience for the people to listen the radio
anytime at anywhere, This is a cheap and pervasive medium for us to create the bran
d awareness by repeatedly listen the advertisement and the brand name. Advantagesof the radio
advertisement are flexibility, quick response and also more effective media for reaching teens.

Newspaper Advertisement

Beside that the radio, most of the People also will saw a newspaper everyday.
Sothis is good market coverage. From here, Tata Nano can get the broad acceptanceand good
reputation from customers. Newspaper advertising is inexpensive.

Marketing Campaign:

This Marketing campaign is base on every year:

Marketing Campaign in Gwalior Trade Fare from November to February

Gwalior trade fair has exploded in the last hundred years to become one of the largest trade fairs
in India, and in the world. It is the most colourful fair of North India and one of the major
attractions of Gwalior. So, it is the best place to explore the Tata Nano and attract people towards
it. Tata Nano is bthe best automobile for Gwalior and nearby Gwalior region because the
mentality of Gwalior people is the something like " In low bugdet take more".

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 Conclusion

Nano's positioning as a "cheap" car killed the aspirational element in the car and the performance
of the model has been terribly underwhelming over the years.
Although Tata motors tried to correct its 4p's it could be help Tata Nano to get success.
So, after four years of its commercial launch, understanding the inevitability of positioning
management repositioned Tata Nano as a "smart City car". Nano is not for someone looking for
better performance, someone who is looking for impress, someone who is looking for long drives
but Tata Nano is definitely for someone who is looking to buy a car but cannot afford too much,
someone who depends on scooter, someone who study outside from hometown, someone for a
house wife who can but a car with her own savings.

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