Chapter 1: Introduction: What Made Tata Nano A Failure

WHAT MADE TATA NANO A 1
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CHAPTER 1: INTRODUCTION
BRCM COLLEGE OF BUSINESS ADMINISTRATION

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INTRODUCTION
1.1. Brand failures
The process of branding was developed to protect products from failure. This is easy to see if we
trace this process back to its 19th- century origins. In the 1880s, companies such as Campbell's,
Heinz and Quaker Oats were growing ever more concerned about the consumer's reaction to mass-
produced products. Brand identities were designed not only to help these products stand out, but
also reassure a public anxious about the whole concept of factory-produced goods.
By adding a human' element to the product, branding put the 19th-century shoppers' minds at rest.
They may have once placed their trust in their friendly shopkeeper, but now they could place it in
the brands themselves, and the smiling faces of Uncle Ben or Aunt Jemima which beamed down
from the shop shelves.
The failure of mass-produced items that the factory owners had dreaded never happened. The
brands had saved the day.
Fast-forward to the 21st century and a different picture emerges. Now it is the brands themselves
that are in trouble. They have become a victim of their own success. It a product fails, it’s the brand
that's at fault.
They may have helped companies such as McDonald's, Nike, Coca-Cola and Microsoft build global
empires, but brands have also transformed the process of marketing into one of perception building.
That is to say, image is now everything. Consumers make buying decisions based around the
perception of the brand rather former Procter & gamble marketing executive, once put it. ‘it’s easier
for a product to fail than it is to survive’.

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1.1.1. Why focus on failure?
 Brand fatigue: Some companies get bored with their own brands. You can see this
happening to products that have been on the shelves for many years, collecting dust. When
brand fatigue sets in creativity suffer, and so do sales.
 Brand paranoia: This is the opposite of brand ego and is most likely to occur when a brand
faces increased competition. Typical symptoms include: a tendency to file lawsuits against
rival companies, willingness to reinvent the brand every six months, and a longing to imitate
competitors.
 Brand irrelevance: When a market radically evolves, the brands associated with it risk
becoming irrelevant and obsolete. Brand managers must strive to maintain relevance by
staying ahead of the category, as Kodak is trying to do with digital photography.
1.1.2. Why brands fail
while branding Scott Bedbury, Starbucks former vice-president of marketing controversially

admitted that consumers don’t truly believe there is a huge difference between products, which
means brands have to establish 'emotional ties with their customers.
However, emotions aren’t to be messed with. Once a brand has created that necessary bond, it has
to handle it with care. One step Out of line and the customer may not be willing to forgive.
This is ultimately why all brands fail. Something happens to break the bond between the customer
and the brand. This is not always the fault of the company, as some things really are beyond their
immediate control (global recession, technological advances, international disasters etc). However,
more often than not, when brands struggle or fail it is usually down to a distorted perception of
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either the brand, the competition or the market. This altered view is a result of one of the following
seven deadly sins of branding:
 Brand amnesia: For old brands, as for old people, memory becomes an increasing issue.
When a brand forgets what it is supposed to stand for, it runs into trouble. The most obvious
case of brand amnesia occurs when a venerable, long-standing brand tries to create a radical
new identity, such as when Coca-Cola tried to replace its original formula with New Coke.
The results were disastrous.
 Brand ego: Brands sometimes develop a tendency for over- estimating their own
importance, and their own capability. This is evident when a brand believes it can support a
market single-handedly, as Polaroid did with the instant photography market. It is also
apparent when a brand enters a new market for which it is clearly ill-suited, such as Harley
Davidson trying to sell perfume.
 Brand megalomania: Egotism can lead to megalomania. When this happens, brands want
to take over the world by expanding into every product category imaginable. Some, such as
Virgin, get away with it. Most lesser brands, however, do not.
 Brand deception: "Human kind cannot bear very much reality, wrote T S Eliot. Neither can
brands Indeed, some brands see the whole marketing process as an act of covering up the
reality of their product. In extreme cases, the trend towards brand fiction can lead to
downright lies. For example, in an attempt to promote the film A Knights Tale one Sony
marketing executive invented a critic, and a suitable quote, to put onto the promotional
poster. In an age where markets are increasingly than reality of the product. While this
means brands can become more valuable than their physical assets, it also means they can
lose this value overnight. After all, perception is a fragile thing.
If the brand image becomes tarnished through a media scandal or controversial incident or even a
rumour spread via the Inter then the company as a whole can find itself in deep trouble. Net Yet
They cannot companies cannot opt out of this turn the clock back to an age when branding didn’t
matter. And besides, they can grow faster than ever before through the creation of a s brand
identity.

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So branding is no longer simply a way of averting failure, it is everything. Companies live or die on
the strength of their brand.
 Comparative analysis of earlier work in brand failure
Matt Haig Kumar & Murthy Kotler & Keller Narayanan

(2005) (1996) (2011) (2012)
Brand amnesia Failure to fully

understand the
meaning of the brand.
Brand deception Wrong positioning Failure to live up to Benefits of the brand

brand promise not communicated
clearly
Brand ego Lack of viable Failure to adequately Poor timing of launch

niche /segment control the brand of a Product
Brand fatigue Lack of attention paid Failure to balance

to the life cycle of the consistency and
product. change in the brand
Brand irrelevance Unrealistic features Failure to be patient Irrelevant Product

with the brand Concepts, Poor
Packing
Cultural reasons Omission of cultural
Dimensions
Brand megalomania Falling in the brand Failure to understand Brand Dilution

extension trap the complexity of
brand equity
measurement and
management.
Brand paranoia Me-too strategies Failure to adequately
support the brand

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Yet despite the Fact that branding 15 more important than at any previous time, companies are still
getting it wrong. In fact, they are worse at it than ever before. Brands are tailing every single day
and the company executives are left scratching their heads in baffle-ment.
brand failure is not the preserve of one certain type of business. Global giants such as Coca-Cola
and McDonald 's have proved just as likely to create brand flops as smaller and younger companies
with little marketing experience. It will also become clear that companies do not learn from each
other's mistakes. In fact, the opposite seems to happen. Failure is an epidemic. It is contagious.
Brands watch each other and replicate their mistakes. For instance, when the themed restaurant
Planet Hollywood was still struggling to make a profit, a group of super models thought they
should follow the formula with their own Fashion Café. Companies are starting to suffer from
lemming syndrome. They are so busy following the competition that they don't realize when they
are heading towards the cliff-edge.
1.1.3. Brand myths
When their brands fail companies are always taken by surprise. This is because they have had faith
in their brand from the start, other- wise it would never have been launched in the first place.
However, this brand faith often stems from an obscured attitude towards branding, based around
one or a combination of the following brand myths:
 If a product is good, it will succeed. This is blatantly untrue. In fact, good products are as
likely to fail as bad products. Betamax, for instance, had better picture and audio quality
than VHS video recorders. But it failed disastrously.
 Brands are more likely to succeed than fail. Wrong. Brands fail every single day. According
to some estimates, 80 per cent of all new products fail upon introduction, and a further 10
per cent die within five years. By launching a Product you are taking a one in ten chance of
long-term success.

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1.2. Introduction of Tata Nano
The Tata Nano is a compact city car that was manufactured and marketed by Indian automaker Tata
Motors over a single generation, primarily in India, as an inexpensive rear-engine hatchback
intended to appeal to current riders of motorcycles and scooters with a launch price of
one lakh rupees or US$2500 in 10 January 2008.
Tata Motors projected production figures of 250,000 annually at launch. This was not achieved, and
various factors led to decline in sales volume, including delays during the factory relocation
from Singur to sanand, early instances of the Nano catching fire or the perception of the car being
unsafe and lacking quality due to cost cutting. Actual sales reached 7,591 for model year 2016-
2017. The project lost money, as confirmed by former Tata Sons chairman Cyrus Mistry and by
2017 Tata Motors management.
In May 2015, to revive the model's sales, Tata Motors proposed a redesign both in- and outside the
car. The name was changed to Gen X Nano to underline the changes, the range was offered in 21
different versions, among them a 5-speed automated manual transmission. Electric power steering,
air conditioning, and Bluetooth radio were available on top models in addition to new colours and
alloy wheels. The body was strengthened and the front and rear bumpers were changed, which
slightly increased the length to 3,164 milli-meters. The interior was also redesigned with new
fabrics and improved soundproofing. The rear opening door and the 5-seat homologation were
introduced. The engine remained the 2-cylinder 624 (38.1 cu in) with 38 hp.
1.2.1. Price
Announced as the most affordable production car in the world, Tata aimed for a price of
one lakh rupees, or ₹100,000, which was approximately $2,000 US at the time. Only the very first
customers were able to purchase the car at that price, and as of 2017, the price for the basic Nano
starts around ₹ 215,000. Increasing material costs may be to blame for this rapid rise in price.

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Compared to the Volkswagen Beetle it had a relatively low price, though still high in terms of the
average salary of an Indian industrial worker or farmer. In 1990, a Beetle from Mexican factories
was priced at $5,300, about $10,499 in today's money. The Ford Model T's initial price was about
$850, equivalent to $24,483 today. The price of the Nano was only just higher than the corrected
price of the Briggs & Stratton Flyer of the 1910s, with the Flyer costing US$125 ($1,767 in 2016),
while the Flyer may today be classified as a go-kart more than a car.
1.2.2. Tata Nano variants
Variants Price Fuel type Transmission ARAI Millage
Diesel 2.00 lakh Diesel Manual 33.0 kmpl
XE 2.35 lakh Petrol Manual 23.9 kmpl
Hybrid 2.50 lakh Electric Manual -
XM 2.72 lakh Petrol Manual 23.9 kmpl
XT 2.92 lakh Petrol Manual 23.9 kmpl
CNG XM 2.96 lakh CNG Manual 36 kmpl
XMA 3.14 lakh Petrol Automatic 21.9 kmpl
XTA 3.36 lakh Petrol Automatic 21.9 kmpl
1.2.3. Cost-cutting features
The Nano's design implements many measures to reduce manufacturing costs. Comparison with
the Maruti Alto 800, the Tata Nano's closest competitor:

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Tata Nano Maruti Alto 800
The Nano's trunk was only accessible from inside Maruti 800 initially had only an opening
the car, as the rear hatch does not open, but it rear-windscreen, but later got a full
eventually received a full hatchback in 2015. hatchback.
One windscreen wiper instead of the usual pair Two windscreen wipers.
No base power steering due to light weight. Added Power steering only in higher variants.

in higher variants in later models.
Three lug nuts per wheel Four lug nuts per wheel
Driver side wing mirror on base model. Higher Both side ORVMs in certain variants.
variants fitted with passenger side ORVM from
2012 onwards.
Radio or CD player Radio or CD player
No airbags on any model No airbag in any variant.
624cc rear engine, 2 cylinders (312cc each) 800cc front engine, 3 cylinders (266cc
each).
No air conditioning in base model No air conditioning in base model
Front passenger seat same as the driver seat and the Front passenger seat same as the driver
headrests are integrated. seat, but headrests separate. Later models
switched to integrated headrests.
Thinner 135/70-R12 space saver spare tyre. Full size spare tyre.
No external fuel filler cap. Fuel inlet is accessed by External fuel filler cap.
opening the front hood.

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Front door power windows only offered on highest Front door power windows only offered
variant. PW switches placed on central console on highest variant.
rather than on door pads.
1.2.4. Sales
At the time of launch Tata Motors planned to sell 250,000 units per year. The maximum sales ever
achieved was 74,527 units during FY 2011-2012 and then sales declined rapidly year on year
leading to a negligible market share of the car in the "A" segment. The product was expected to be
phased out soon as dealers stopped placing orders.
FY 2009–2010 30,000
FY 2010–2011 70,432
FY 2011–2012 74,527
FY 2012–2013 53,848
FY 2013–2014 21,129
FY 2014–2015 16,903
FY 2016-2017 7,591
FY 2017-2018 April - October 1,502
1.2.5. Tata Nano export
 Tata Nano Europa
With a length of 3.29 metres and width of 1.58 metres, the Tata Nano Europa continues to be
stylishly petite but surprises with its spacious interior and generous leg space. The slightly longer
wheelbase of 2.28 metres combines excellent space and manoeuvrability, further improving on the

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benchmark standard set by the Tata Nano. The enhanced spaciousness is complemented by
redesigned interiors, marked by smooth curves and a high tech yet gentle feel.
To meet the driving needs of its target customers, the Tata Nano Europa will be powered by a 3-
cylinder sporty all-aluminium MPFI engine matched with a 5-speed automatic transmission, and
electric power steering. The gasoline engine will be class-leading, providing high fuel efficiency
and low CO2 emission of less than 100 gm / km meeting the twin goals of being environmentally
friendly and stylish – just like the Tata Nano.
The Tata Nano Europa meets all safety regulations. In addition to the all sheet-metal body, its
energy absorbing design, use of advanced restraint systems, ABS, ESP and Air Bags will enhance
passenger safety.
Just like the Tata Nano, the Tata Nano Europa incorporates exterior compactness with interior
comfort and seeks to provide motorists the pleasure and utility of personal mobility combined with
affordability and environment-friendliness, in a world where smaller, fuel-efficient cars are
emerging as a preferred choice.
1.2.6. Award and achievements
 2010 Business Standard Motoring Indian car of the year

 2010 Bloomberg UTV-Autocar car of the year
 2010 Edison Awards, first place in the transportation category
 2010 Good Design Awards, in the category of transportation
 2014 India's Most Trusted hatchback car, according to The Brand Trust Report 2014 edition
1.2.6. End of production
Due to the low sales of the model (only one Nano was assembled in June 2018 against the 275
assembled in June 2017) Tata Motors announced the end of production without any direct
successor. The Nano was never really appreciated by the public and sales were always lower than
expected.

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1.3. Failed compact cars in India and reasons behind it
1) Maruti Suzuki Kizashi
We got to start this list with the car that you will find on all the “Failed Cars in India” lists. Kizashi
is undoubtedly Maruti’s most disappointing venture in India till date. A lot of people remember the
Kizashi as Maruti’s debut in the luxury sedan segment which didn’t turn out as Maruti probably
anticipated. The Kizashi was a tasteful product and was considered by Maruti as the first luxury
sports sedan of India. It had appealing looks and the interior quality was also something ever seen
on a Maruti before. The Kizashi came with a 2.4 Litre petrol engine producing 175HP and 230Nm
of torque mated to a 6-speed manual transmission and a 6-speed CVT.
What went wrong?
The Kizashi came through the CBU route in our country and this made cost more than Rs. 17 Lakh
which is a price no one was willing to pay for a car with the Maruti Suzuki badge on its grille.
Maruti till date is seen as a brand for economy cars and that reputation has caused the Kizashi as
well as the Grand Vitara prior to this, bombed in the Indian car market. A Maruti car at a price
point north of Rs. 15 Lakhs never made sense to the Indian Customers.
2) Renault Scala
Born from the Renault-Nissan alliance in India, Renault Scala was the rebadged version of the
Nissan Sunny in India. The Scala came with a revised front bumper and grille, Redesigned tail
lamps and reworked rear bumper as well so that the customers can tell it apart from the Sunny.
Renault Scala came with two engine options, a 1.5-litre XH2 petrol engine making 99HP and
134Nm of torque and also a 1.5-litre dCi diesel engine making 86HP and 200Nm of torque.

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What went wrong?
Nissan with the Sunny did good numbers in the Indian car market and it was the quintessential
“car” as it was touted. However, people didn’t show similar faith in the rebadged Renault Scala and
it didn’t see too many takers.
3) Nissan Teana
Nissan came with the Teana back in 2007, a suave executive sedan made for the chauffeur-driver
class. Teana was an elegant and very long sedan that came with the performance of a V6 under the
hood. Teana had a 2.5-litre V6 engine producing 182HP and 228Nm of torque.
What went wrong?
The reason why the Teana wasn’t able to do well is two-fold. Firstly, it fell prey to the steep pricing
on its way over to India through the CBU route. Secondly, it lost the battle to the aces of the
executive sedan segment, Honda Accord and Toyota Camry. Hence, Nissan Teana couldn’t have a
lasting impression on the executive sedan market in India.
4) Opel Vectra
A German automobile company under an American car giant General Motors, Opel India was not a
very successful venture for General Motors in India. The brand got shut down after a snap of 10
years in 2006. The brand had three monikers in India, namely Astra, Corsa and Vectra. Amongst
these, the Vectra is the car which most of the people won’t even remember to have ever existed in
India. It was a D-segment sedan which was way ahead of its time during its debut in 2003. It had a

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strong engine capable of churning out a 145HP and 203Nm of torque and go could go past 200km/h
mark, a big deal back in the day.
What went wrong?
Opel didn’t have a very strong after-sales network and the cars were more expensive than their
competition. Also, Indians didn’t show good faith in the brand as well. So, due to a combination of
all these reasons the Vectra failed in India and Opel sold only 500 units of the Vectra.
5) Mahindra Renault Logan
The Logan was a product of the collective goal of the Mahindra-Renault alliance to make one of the
most reliable and affordable cars for India. The Logan came with a 1390cc petrol engine making
75HP and 110Nm of torque. It also came with LPG and CNG variants.
What went wrong?
The Logan with practical ergonomics and also with the CNG and LPG options instantly became a
fleet car market favourite. Due to its public image of a “taxi”, the general customers refrained
themselves to buy it. Also, the car had a very plain boxy look to it which was not specifically
appealing to many.

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CHAPTER 2: LITERATURE REVIEW

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LITERATURE REVIEW
most of the studies talk about the factors that cause brand to be successful (McQuiston, 2004).
Major work done this subject area focuses on how big brands are made successful and what aspects
push them to achieve the excellence but the literature on why good brands fail is difficult to find
(Khan & Lee, 2014).
2.1
Kauser Saeed, Kamran Ahmed Siddiqui (2016): The major objective of this paper was to
summarize the brand failures from three different dimensions which are, indicators for brand
failure, reasons of brand failure and tactics to save brands from permanent failure. This paper
includes the screening of the dataset from Pakistan in which 196 brand experts gave their responses
about three dimensions which caused brand failure. Judgemental sampling technique was used by
researchers in this paper. This research paper conclude reasons for brand failures which are
summarized into seven categories i.e., Branding Pillars, Branding Incompetence, Brand
Performance, Brand Origin, Brand Image, Brand Competition and Brand Strategy. The paper has
also summarized the tactics to save the brand from permanent failure into three tactics i.e., Macro
Branding, Micro Branding and Core Branding Practices. The limitation or research gaps in the
research manuscript is the ideal respondents for this study would have been the marketing/brand
managers of the companies with failed products but finding such respondents is very difficult.
Another limitation is that the data collection tool was devised by the authors based qualitative data
acquired in exploratory phase of the research. The set is small and it can be escalated. This study is
limited to the perceptions of the respondents and no evidence was sought to verify it.
2.2
DR. Neelam Kalla (2015): This article includes detail research on poor branding and positioning
of people car tata nano. Positioning is all about getting the right position; but the game remains
absolutely psychological. Tata Nano failed in positioning as well as repositioning strategies. a
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number of factors have played a significant role like production delays, product attributes,
economic crisis, political controversies or failure to select the right market segment. The basic
sources of research is secondary data obtained from companies website, magazines and business
publications. This paper shows that the case of positioning of the cars and automobiles the
economic class to which actually the person is belonging to is dissociative group. The middle class
persons doesn‘t want to be viewed as a member of the same economic class but the advertisements
of Tata Nano directly were disclosing the association with the their actual income class. In a
country like India, a car which a matter of social prestige and economic state, a consumer wants to
be viewed as financially well doing prestigious owner of a four-wheeler and this psychological
need was totally ignored in the case of Tata Nano. This paper concluded that the failure of Tata
Nano present with a great lesson for all the marketers the car was positioned as a symbol of social
liberty and equality. It was positioned as dream car of common man of India. It was targeting the
laymen who want to have a car and it got successful to some extent but only till a functional level.
The Nano made sense in terms of a social mission, on a purely functional level. Good quality
engineering focused on the task of making something reliable and safe as cheap as possible. Sell it
to people with not much money. But it has been criticized all around as the one to the greatest
positioning blunder as even the most cost-effective producers do not label their products as cheap.
Here the cheap has a great social connotation and the social tag because nobody aspires to buy the
cheapest thing on the market, and driving around in a car is as big a statement as you get to make.
Human psychology is that the motivation behind buying isn't to have a car, or a shampoo, or
whatever the product is. If a product is positioned as poor‘s product then poor people will definitely
avoid it because they don‘t want to be viewed as poor yet. The limitations or research gaps in
research manuscript is that this survey is based on secondary source of data so there are chances
that data would have outdated, which directly affect the end result of research. Another limitation is
about prestige of data or data source and biasness.
2.3
Peter wells (2010): This paper provides a case study of the Tata Nano, a low-price car designed
primarily in and for the Indian market, and its implications for the developed industrial markets.
While the Nano is a classic ‘disruptive’ innovation in an Indian context, this paper argues that the
car and its emulators have the potential to undermine the viability of the European automotive
industry whose business is premised on technological sophistication, premium branding and high
price. In an era of greater austerity, the ‘value for money’ segment is the one with global growth
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potential in emergent markets as well. The paper concludes that policy makers in Europe will need
to decide how to react to the rather different vision of automobility offered by the Nano.
2.4
Margareta Nadanyiova1, Lubica Gajanova1, Dominika Moravcikova1 and Judit Ola (2019):
This paper focuses on how brand value has direct relationship with sales in automotive industry.
This paper includes a regression and correlation analyses focused on investigate the dependence
between the brand value and sales in automotive industry. The basic sources of research is
secondary data, which obtained from worldwide surveys in the form of rankings published by
Forbes magazine, annual reports of companies and published professional publications. This paper
included methods like generic scientific methods, mathematical methods and statistical methods.
This paper concludes that In the current competitive environment, it is necessary for companies to
improve the value of their brands. sales included in analysis were directly determined by the brand
value. The business success in automotive industry and sales volume is significantly dependent on
the level of brand value. The limitations or research gaps in research manuscript is that the sample
of the result is too small to verify or conclude research object. Another limitation is this survey is
based on secondary source of data so there are chances that data would have outdated, which
directly affect the end result of research.
2.5
Natasha Saqib (2016): This paper includes detail research on positioning and repositioning of tata
nano. This paper also focuses on how the initial strategies for launching and positioning Tata Nano
as a “People’s Car” backfired and how management recognized its shortcomings and mistakes that
led to the wrong positioning of Tata Nano as “Worlds Cheapest Car” among the segment it was
created for. And how finally after four years of its commercial launch, understanding the
inevitability of positioning management repositioned Tata Nano as a "Smart City Car" by focussing
on the youth to rejuvenate its image. The study aims to determine the strategies adopted by Tata
Nano to grow its market share. For this purpose, secondary data has been collected from various
sites, magazines and newspapers. This paper concluded that the automobile industry has gathered
immense pace in India in the last few years and the Indian passenger car market more specifically
small car market is far from being saturated leaving ample opportunity for volume growth. Tata
Motor’s tried to grab this opportunity with Tata Nano and tried to position Tata Nano as an

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affordable car but regrettably got wrongly positioned as word cheapest car. Positioning is the key to
selling a product. Positioning helps create an image for a product or brand or even company. How
the potential customers perceive a product is very important. This is where Tata Motor’s failed
miserably. 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 Motor’s
tried to correct its 4Ps it could not help Tata Nano to get the success. So, finally after four years of
it commercial launch, understanding the inevitability of positioning management repositioned Tata
Nano as a "Smart City Car" by focusing on the youth to rejuvenate its image.
2.6
Matt Haig (2005) : This research paper summarized failure as (1) Brand Amnesia where the brand
forgets what it stands for and tries to change itself; (2) Brand Ego is when the brand thinks very
high of it-self and tries to diversify in other unrelated areas; (3) Brand megalomania is the result of
Brand ego where brand dilution results when a brand expands in many categories; (4) Brand
deception is the mistake that the brand portrays what it is not; ; (5) Brand fatigue when brand
becomes old without any rejuvenation ; (6) Brand paranoia when the brand is afraid of its
competitors and tries to change to look like its competitors; (7) Brand irrelevance when the brand
does not change as needs changes specially in the evolving markets. Various other studies have
touched the subject area. The most prolific work on brand failure has been done by Matt Haig.
There are seven crucial mistakes that brands could make and led to failure.
2.7
Ying fan (2005): The purpose of this paper is to explore the concept of ethical branding and its link
to corporate reputation. Brands have traditionally been studied only as an economic construct.
Brands, as a social construct, have not yet been fully understood due to the lack of research. The
paper discusses major issues with references to existing literature and practical examples. In the
conventional brand models the value of brand equity is defined and measured by its economic
performance in financial terms. This model has a number of deficiencies. First, two basic elements
are missing: legality and ethics, which form the foundation of brand equity. A good brand must be a
legal as well as ethical one. Thus brand value needs to be assessed by both financial and ethical
measures. Second, conventional brand models focus largely on product brands rather than corporate

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brands. Brands and branding have such a profound impact on the society as whole and not just on
these people who buy them. There is a wider public, in addition to shareholders and consumers,
who may be potentially affected by the branding decisions. The impact of branding on these
stakeholders should also be taken into consideration. An ethical brand enhances the firm's
reputation; such a reputation reinforces the brand in turn. On the other hand, any unethical
behaviour will severely damage or even destroy the total intangible asset as evidenced by the recent
high profile corporate scandals. The paper questions the conventional branding practice, and
explores the links between ethical branding and corporate social responsibility. Many questions
remain to be addressed. Ethical branding could provide the company with a differential advantage
as a growing number of consumers become more ethically conscious. It could also help overcome
the increasing consumers' scepticism and cynicism towards branding communications.
2.8
Carlberg, Oliver, Kjellberg, Oscar (2018): The purpose of this paper is to analyse and obtain a
deeper understanding regarding the role of prior and present product experience and its impact on
the buying process of an automobile. A research gap has been identified regarding the connection
between a product experience and its actual role in the buying process of an automobile. It is argued
that great measures of a consumer’s perceptions of a product are formed by gathered product
experience whilst no previous research conclude to what extent it actually makes an impact.
Additionally, no previous research has identified if negative product experiences of automobiles
deem a brand to be undesired to an individual in comparison to brand where no product experience
is to be found. This paper has utilized a qualitative research approach that includes the conduction
of semi-structured interviews, which worked towards investigating the perceptions of interviewees
with regards to the subject of product experience and to what extent it impacts individuals.
Moreover, an abductive research approach is utilized within this paper as the approach combines all
forms of known information in order to form a conclusion based upon discovered observations
whilst also collecting data that enables a more thorough insight. This research proves that product
experience plays a vital role in subsequent buying decision processes. Previously attached
meanings and values, elicited emotions and perceptions towards a specific brand are through our
findings confirmed to have a direct impact on purchases of automobiles as well as feelings
associated with an automotive premium brand. The conducted research also found that bad product
experiences, although damaging brand perceptions, most commonly surpasses no experience at all.

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2.9
Kumar & Murthy (1996): Brand failures can be categorized in two broad categories; a)
Strategy/Organizational level failure; b) Product / Brand level failure Strategy/organizational level
failure encompass the mismatch between organizational strategy and its resources. A product from
an organization will be successful only as long as the market-organization fit is managed well. A
brand/product level failure occurs when the brand fails to satisfy the customer at functional or
emotional level. Brand failure is also linked with the decline in the brand equity.
2.10
Shelby hunt (2019): This article uses the Hunt-Vitell theory of ethics to provide a framework for
explicating people's personal moral codes, which in turn, helps us to understand the ethical
controversy over branding. The article (1) provides a brief discussion of the nature of branding, (2)
identifies major arguments that support the view that branding is morally wrong, (3) overviews the
H–V theory of marketing ethics, (4) explicates the H–V theory's “personal moral codes”
framework, and (5) shows how it provides a starting point for those who seek to understand,
evaluate, and investigate the ethics of branding. The limitation or research gap in this article
 Justification for project title
“What made the tata nano a failure”
Almost everyone dreams to have their own car. However, not everyone can afford them. This
prayer of the common man in India was heard by Padma Bhushan awarded corporate Ratan Tata in
2008 When tata first announced about Nano project every middle-class person daydreaming about
having a car because of its low price. Because of its low-price tata nano was labelled as people’s
car or the world’s cheapest car. Tata nano was come with huge expectations but fail miserably in
the automotive market. Sales started declining at a very rapid speed and tata shut down their dream
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project nano in 2019. So this report is all about the reasons, factors, and variables which caused the
failure of the dream project of ratan tata’s people’s car so, for this report this title is suitable.
CHAPTER 3: RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY
3.1. Research objective
Research objectives describe concisely what the research is trying to achieve. They summarize the
accomplishments a researcher wishes to achieve through the project and provides direction to the
study. There are two types of research objectives: primary and secondary objectives.
3.1.1. Primary objective
To know the reasons, factors, variables, and drawbacks that caused a failure to the world’s cheapest
car tata nano from the population of Surat city.
3.1.2. Secondary objectives
 To evaluate the perception of the respondents about tata nano.

 To analyse the reasons why people prefer other cars over tata nano.
 To evaluate the features of tata nano that caused a failure.
 To know the features and facilities that people most looking for while making a buying
decision of car.
 To find is there any relationship between gender and car preference with the help of chi
square test.
 To evaluate the reliability of tata nano.
 To evaluate how low fuel capacity and less speed affect the sales of tata nano.
 To understand relationship between warranty period and sales of car.

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 To understand reasons behind how increasing price affects sales or growth of tata nano.
3.2. Research design
The research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring you will effectively
address the research problem; it constitutes the blueprint for the collection, measurement, and
analysis of data. There are two types of research design:1) Quantitative research design 2)
Qualitative research. Design.
 Types of quantitative research designs
1) Descriptive research design: This is a theory-based design, where the researcher is primarily
interested in describing the topic that is the subject of the research. It is applied to case studies,
naturalistic observations, surveys, and so on.
2) Correlation research design: correlational design allows the researcher to establish some kind
of a relation between two closely related topics or variables. It’s a non-experimental research
design type that requires at least two groups of data.
3) Experimental research design: a controlled experiment, or a quasi-experiment, this is one of

the research designs types that establishes a relation between the cause and effect of a particular
happening.
4) Explanatory research design: Explanatory research design is used to further expand, explore,
and explain the researcher’s ideas and theories. This type of research design is used to elaborate on
the unexplored aspects of a particular topic and try to explain the missing pieces.

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I had used the descriptive research design as I was using primary data sources and also this type of
research deign help Since the data collected is qualitative and quantitative, it gives a holistic
understanding of a research topic. The information is varied, diverse, and thorough. As the sample
size is larges so descriptive research design is suitable for this report because data collection is
quick to conduct and becomes inexpensive in descriptive research design.
3.3. Source of data
For preparing this project report, I used two types of data which are as follows
1) Primary data
A primary data source is an original data source, that is, one in which the data are collected first
hand by the researcher for a specific research purpose or project.
The data for the following project have been collected through primary source. Survey has been
conducted by designing questionnaire and filed it up from the respondent under descriptive design
method.
2) Secondary data
Secondary data is the data that has already been collected through primary sources and made
readily available for researchers to use for their own research.
Here I used some research related papers, articles and books as a secondary data for preparing this
project.
Therefore, this project is based on both primary as well as secondary data.

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3.4. Research time period
The responses were recorded between April 2021 to June 2021.
3.5. Population
This research was done with a view to study reasons behind failure of tata nano. As the survey
method has been taken for the research study the population was taken as people of Surat city who
have using nano. Population of this report includes people from various occupation, age, gender,
and family size.
3.6. Sampling
sampling is the selection of a subset of individuals from within a statistical population to estimate
characteristics of the whole population.
3.6.1. Sample frame
For this research sampling frame is, person should be aged above 18, should have a car’s driving
license and should be aware about tata nano.
3.6.2. Sample size

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Researcher has taken 200 samples from selected areas of Surat.
3.6.3. Sample area
Sampling area has been selected areas of Surat city.
3.6.4. Sampling technique
A sampling technique is the name or other identification of the specific process by which the
entities of the sample have been selected. There are two types of sampling: 1) Probability sampling
methods 2) Non-probability sampling methods.
I have used non-probability sampling method/technique in my report.
Type of non-probability sampling methods
1) Convince sampling: Convenience sampling is perhaps the easiest method of sampling, because
participants are selected based on availability and willingness to take part. Useful results can be
obtained, but the results are prone to significant bias.
2) Quota sampling: This method of sampling is often used by market researchers. Interviewers are
given a quota of subjects of a specified type to attempt to recruit. Ideally the quotas chosen would
proportionally represent the characteristics of the underlying population.

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3) Judgement (or Purposive) Sampling: Also known as selective, or subjective, sampling, this
technique relies on the judgement of the researcher when choosing who to ask to participate.
Researchers may implicitly thus choose a “representative” sample to suit their needs, or specifically
approach individuals with certain characteristics.
4) Snowball sampling: This method is commonly used in social sciences when investigating hard-
to-reach groups. Existing subjects are asked to nominate further subjects known to them, so the
sample increases in size like a rolling snowball. For example, when carrying out a survey of risk
behaviours amongst intravenous drug users, participants may be asked to nominate other users to be
interviewed.
I have used convince sampling method for the purpose of the study. Convince sampling method is
suitable for report because it’s inexpensive compare to other methods and also participants are
readily available in it. This method helps in our report as it provides a wealth of qualitative
information and saves time while gathering data.
3.7. Data collection
I have used convince sampling method for the purpose of the study. Convince sampling method is
suitable for report because it’s inexpensive compare to other methods and also participants are
readily available in it. This method helps in our report as it provides a wealth of qualitative
information and saves time while gathering data.
3.7.1. Type of data
For this research I have used primary data which was collected through questionnaire. Quantitative
data deals with numbers and things you can measure objectively.

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3.7.2. Instrument used
The research instrument has used in this survey is detailed structured questionnaire. The series of
questions was asked in questionnaire for the purpose of gathering information from respondents.
3.7.3. Methods of data collection
Methods of data collection
1) Interviews.
2) Questionnaires and surveys.
3) Observations.
4) Documents and records.
5) Focus groups.
6) Oral histories.
Here for this research, I have used questionnaire and survey as a data collection method.
3.8. Data analysis
Data analysis is a process of inspecting, cleansing, transforming, and modelling data with the goal
of discovering useful information, informing conclusions, and supporting decision-making.
3.8.1. Tools and techniques of data analysis
The analysis of data done through frequency method, percentage method, weighted average
method, Graphs, pie chart, bar charts, cross tabulations, chi square, Regression analysis and cohort
analysis test in MS Excel and SPSS
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3.9. Limitations of work
 Sometimes respondent might give wrong information.

 Majority of people in Surat uses two-wheelers. so it’s hard to decide sample group.
 Bias of the respondent may affect the result of the study.
 In this research project I have used convenient method of sampling so it may happen that
many samples are not exactly right representative of population.
 In this research I have taken only 200 sample for study which is very few in comparison of
actual population of Surat city.
 Sometimes sample fail to give opinion on some features of car because lack of knowledge.
3.10. Scope of future study
There is a very large scope available for this topic. I can conduct this research at state and national
level and it will be very beneficial for automotive industry of country. As a result of this national
level of study automotive company who want to launch city car can design appropriate policy and
strategy.

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CHAPTER 4: DATA ANALYSIS

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DATA ANALYSIS
QUESTION 1: Are you aware about Tata Nano?
No; 9
Yes
No
Yes; 191
Figure 4.1 Awareness of Tata Nano amongst sample
Interpretation:
I have taken 200 people to know whether they aware of Tata Nano or not. So, the above diagram
shows that 191 people aware of Tata nano which is a good sign for the company. 95.5% awareness
about Tata Nano amongst sample shows good marketing has been done by the company's

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marketing team. On the other hand, 4.5% sample isn't aware of Tata Nano, which is negligible.
Almost majority of the sample aware about tata nano which means company don’t have to spend
money on advertisement and other marketing activities.
Question 2: pricing more than what was promised by the company caused
NANO’s failure.
Frequency Percetage
80 40.00%
37%
70 35.00%
60 30.00%
28%
50 25.00%
Percentage
RESPONDENTS
40 20.00%
18%
30 15.00%
13%
20 10.00%
10 5% 5.00%
0 0.00%
Strongly Agree Neutral Disagree Strongly
Agree Disagree
Agreeance
Figure 4.2 Agreeance of sample on pricing more than what was tata promised caused tata nano's
failure
Interpretation:
From the above figure, we can get that among the 200 respondents, maximum respondents agree on
the fact that increasing the price of tata nano more than promised price of 1 lakh, caused a failure.
17.5% of the sample strongly agree with the statement while 28% neutral about their agreement.
54.5% sample out of 100% agreeance shows that tata nano has failed to convince their customer
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about their pricing policy with concerning features they provide. 10.5% sample disagree on
statement while other 5% strongly disagree, which shows that they are satisfied with Nano’s quality
to its price.
Question 3: NANO has enough seating capacity & spacing to label as family
car
Frequency Percentage
80 40.00%
70 35.00%
60 30.00%
50 25.00%
RESPONDENTS
PERCENTAGE
40 20.00%
30 15.00%
20 10.00%
10 5.00%
0 0.00%
Strongly Agree Agree Neutral Disagree Strongly
Disagree
Agreeance
Figure 4.3 Agreeance of sample on whether Nano has enough seating capacity & spacing to label as
family car or not
Interpretation:
From the above figure, we can get that among the 200 respondents, 71 respondents agree on the
fact that Nano has enough seating capacity & spacing for family. Also 30.5% sample strongly
believes that nano has enough spacing to carry their whole family The whole idea of Tata Nano
launching was so that family can travel in one vehicle with enough seating capacity per person but
15.5% of the sample refuse to agree with nano’s seating capacity & spacing, this is because maybe
they have large family or have obese family which affect seating comfort. 19% respondents neutral

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about the statement which means they sometimes have face seating or space problems with car but
more or less car satisfies seating needs. As I interviewed some of my respondents, I come to know
that most of the respondents who are disagree or strongly disagree with the statement has facing
seating or spacing problems at family functions, marriges, festivals and other occasions but they
haven't faced any seating issues at usual day.
Question 4: TATA marketed NANO as world’s cheapest car. Marketing of

NANO as cheapest car was a mistake
80 40%
37%
70 35%
60 30%
50 25%
Axis Title
23%
Axis Title
40 20%
19%
30 16% 15%
20 10%
10 5% 5%
0 0%
Strongly Agree Agree Neutral Disagree Strongly
Disagree
Agreeance
Figure 4.4 Agreeance of sample on whether there was a mistake in marketing of nano or not
Interpretation:
As we see above 95.5% of the respondents aware of tata nano which is because of the good
marketing efforts of the company’s marketing team. But 37% of respondents strongly believe that
marketing nano as the cheapest car was a mistake.23% of respondents agree with the fact that
marketing nano as the world’s cheapest car was a mistake.37 respondents which are 18.5% of the
total sample fail to Indifferentiate between agreeing and disagree. 60% of the sample agree with the

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statement while only 16% of respondents disagree with it, this shows a mistake was done by the
company’s marketing team in terms of branding of the product (nano). They misinterpret the target
market mind because as I interviewed some of the respondents, I come to know that out of 60% of
the respondent, the majority of them interpret the term the “cheapest” as a low-value product while
it’s actually marketed as the “cheapest” as a low-price product with good quality in comparison to
other similar cars.
Question 5: Do you think NANO was reliable car?
No
32%
Yes
68%
Figure 4.5 Opinion on reliability of Tata Nano
Interpretation:
It has been found by observing above figure that majority (68%) of the respondents have positive
opinion on nano’s reliability, they believe nano is reliable car. 32% of the respondents which is
64 respondents out of 200, oppose other 134 respondent’s opinion, which mean they believe nano

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isn’t reliable car. By seeing table or graph below we can find the reason why respondents think
such way about nano’s reliability.
Question 6 to 10: Checking whether nano is reliable or not by sample’s

opinion on various statements
8
28
I think production issues of Tata Nano cause its failure 47
63
54
5
32
I think Poor Build Quality of Tata Nano cause its failure 35
75
53
10
25
I think Emotionally Disconnected Advertising of Tata Nano cause its failure 53
63
49
16
40
I think Lack of practicality in Tata Nano cause its failure 57
71
16
0 10 20 30 40 50 60 70 80
Strongly Disagree Disagree Neutral Agree Strongly Agree
Figure 4.6 Checking reliability of nano by various statement
Interpretation:

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The Reliability of the car is very important for any brand. The majority of consumers (55 percent)
selected reliability as the defining factor in their new car purchases. There are some factors that
affect the reliability of the car. 27% of the sample strongly agree on the fact that production issues
cause the failure of tata nano. 30.5% of the sample strongly agree with the statement. Only 14% and
4% of respondents Disagree and strongly disagree with the statement. 57.5% of the sample believe
excessive production of nano in comparison to their demand highly affected the success.
37.5% respondents, thinks poor build quality cause failure while 16% respondents disagree with
them. 53 respondents out of the sample strongly believe that using low-quality material and less
material in comparison to other compact cars cause them a failure, on the other hand only 2.5%
strongly disagree with their opinion. 17.5% of respondents neither agree nor disagree with the
statement,
5% of the sample strongly agree that nano’s advertisement makes them feel connected with the
brand while 71 respondents out of 200 believe nano lacks practicality. 12.5% of respondents feel
tata nano’s advertisement more or less makes them emotionally connect with the brand while 8% of
respondents strongly agree with the lack of practicality statement. 66% of out of taken sample
accept the fact that tata fail to increase brand & product awareness by advertising. 26.5% of
respondents fail to differentiate between agreeing or disagree with advertisement attachment.

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Question 11: Rating statements of comfort feature from strongly agree to

strongly disagree
1-Strongly Agree 2-Agree 3-Neutral 4-Disagree 5-Strongly Disagree
I think Tata Nano fail because of its Heater was not as good as compared to 40 65 42 27 26
other similar cars
I think Tata Nano fail because of its Air conditioner was not as good as compared 27 67 52 44 10
to other similar cars
I think Tata Nano fail because of its law fuel warning light was not as good as 37 54 66 30 13
compared to other similar cars
I think Nano failed because its vanity mirror was not as good as compared to 105 30 37 15 13
other similar cars
I think Tata Nano fail because of its Height adjustable front seat belts was not as 28 114 33 17 8
good as compared to other similar cars
0 50 100 150 200 250
1 2 3 4 5
Figure 4.7 Rating comfort features according to its functionality
Interpretation:

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It has been found by observing the above figure, 105 respondents which is the majority of the
sample who strongly agree with the statement that tata nano failed because its vanity mirror was not
as good as other similar cars while only 6.5% of the sample disagree with them.
20% of people from Surat city agree on that that tata nano failed because it didn’t have height-
adjustable seat belts while 16.5% of the sample neither agree nor disagree with the statement. Only
4% of the population strongly disagree with the statement.
Majority of the respondents who fill the questionnaire neutral on the law fuel warning statement.
On the same statement, 18.5% sample highly agree while 6.5% target sample counters it.
The Same goes for the air conditioner situation. 33.5% of respondents believe that nano didn’t have
a good air conditioner as compared to other compact city cars and 5% people counter it by strongly
disagree with the statement.
52.5% of the respondents which holds the majority in the sample either agree or strongly agree on
the matter that tata nano didn’t have a good heater as compare to other mini cars in the same price
range while only 26.5% of the respondents either disagree or strongly disagree with it.

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Question 12: Rank the comfort features which NANO should have included in
design to avoid failure
120
100
80
60
40
20
0
1 2 3 4 5 6
Cruise control Parking sensor Power steering Rear camera Trunk light Keyless entry
4.8 Figure Ranking for tata nano’s comfort features
Interpretation:
As we can see the majority of the sample thinks tata nano should have add cruise control & they
rank cruise control as the most needed feature in tata nano. As the 2nd most needed feature they
chosen the parking sensor, it might be because Parking sensors remove the stress out of parallel
parking in a tight spot without the worry of accidents and make it easier to maneuver in traffic.

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Respondents choose power steering as 3rd most needed feature in tata nano to avoid a failure while
the sample put rear camera at 4th even though Vehicle reversing cameras not only save money by
reducing minor accidents, they also save lives by giving drivers increased visibility behind their
vehicles. Trunk light which shows the rear edge of the vehicle to allow other drivers to
appropriately gauge the size and shape of the car, the sample put it at 5th while keyless entry
system which is not that much important put at number 6.
Question 13: Which entertainment, communication, information features

should NANO have Add?
120 60.00%
103
100 50.00%
PERCENTAGE
80 68 71 67 40.00%
59 64
57
60 30.00%
40 20.00%
20 10.00%
0 0.00%
er ive na ge
r
ili
ty ck nt
ay dr en en ba fro
Pl rd
- t s pab ay rs
CD ha an as ca pl ka
al te
d rp OD
D a
rn a ea IP DV Sp
e
te gr rr
In ter f o
In en
cre
ys
la ENTERTAINMENT FEATURES
si p
D
Figure 4.9 Entertainment and information features Nano should have Add
Interpretation:
Entertainment options enhance the driving experience and they make being in your vehicle more
enjoyable. But which entertainment features population need more? From above clustered column
chart we can say that display screen for passenger needed most by sample, followed by integrated
antenna (71) and internal hard-drive (68). 31.5% prefer Integrated antenna because can support
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mobile communications (3G, 4G and LTE). 33.5% of respondents prefer speakers in car followed
by CD player (59) and DVD playback (57). As I interviewed many respondents, I come to know
that music in the car helps to put the driver in a good mood, reduces aggression behind the wheel
and helps them focus, especially in urban traffic. CD player and DVD player is least preferable by
respondents because in today’s time cars already have IPOD capability and display screen which
engage them in some activity.
Question 14: Do you think less warranty period of NANO as compare to other
compact cars cause its failure?
39; 20%
107; 54%
54; 27%
Figure 4.10
Yes No Maybe
Opinion on
Warranty period from sample
Interpretation:
It has been found by observing from pie chart that majority of respondents believes that less
warranty period in compare to other cars affects nano’s sales. More than 50% of the sample agree
with the fact that warranty period in terms of kms as well in month was lesser which cause its
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failure because in India majority of population doesn’t replace car for a long time. 27% of the
sample shows disagreement which means they believe given warranty period by nano was enough
to justify to its price. 20% of the sample not sure about their opinion.
Question 15: Do you think that low ground clearance of NANO played a role in
its failure?
Criteria Frequency Percentage
Yes 100 50%
No 74 37%
Maybe 26 13%
Total 200 100%
Table 4.1 Preference on ground clearance
Question 16: If yes then How much ground clearance should NANO have?

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34
RESPONDENTS 30
20
16
165 170 175

180+
GROUND CLEARANCE
Figure 4.11 Sample’s opinion on ground clearance of Tata Nano
Interpretation:
Table above shows that 100 respondents want more ground clearance than what nano provide. 37%
of the sample satisfied with ground clearance of nano which means they generally usually drives on
the roads which has least bumpers or drives on clean road. 13% of the sample not so sure about
their opinion on ground clearance of tata nano.
Nano has 160mm ground clearance which is way lower in comparison to average ground clearance
for roads in India (170mm-180mm) because of those 100 respondents from the sample demands
more ground clearance in Tata Nano. 34% out of 100 has requirement of 175mm ground clearance
from surface. 30% of respondents from 100 demands 170mm ground clearance while 20% of the
sample demands 165mm ground clearance. Only 16% out of remaining sample demands 180+mm
ground clearance which is very higher than average ground clearance requirement in India. In
160mm ground clearance driver may face issues at unpaved roads, potholes, speed breakers and
debris.

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Question 17: Do you think less residual value of NANO cause it’s failure?
Maybe
12%
No Yes
29%
No
Maybe
Yes
60%

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Figure 4.12 Sample’s opinion residual value of Nano
Interpretation:
Residual value is the expected value of a car at the end of the lease term. 60% of the respondents
believe less residual value partially plays a role in nano’s failure. As I interviewed some of the
respondents, I found out that interviewed sampled believes that high residual value is generally
preferable because when leasing they're associated with lower monthly payments. 28% of the
sample disagreed with the statement that less residual value affected nano’s success. I believe this
28% of the sample believes in a way because they might sell a car after a very long span time, after
a long span of time residual value isn’t effective. 12% of respondents neither say yes or no about
the residual value of nano.
Question 18: According to you, which competitor car played a huge role in a
NANO’s failure?
120 60%
109
100 50%
80 77 40%
74
RESPONDENTS
PERCENTAGE
65
60 30%
40 20%
20 10%
0 0%
Renault KWID Datsun GO Maruti Alto Hyundai EON
COMPETITOR CAR
Figure 4.13 Preference of competitors car over Tata Nano

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Interpretation:
The automotive industry is the very competitive. Brand image and brand equity are important
reasons that can help automotive makers in such times. If your customers love you, it is one of your
biggest sources of competitive advantage. 109 respondents prefer Maruti Suzuki as the biggest
competitor which affects the success of tata nano. This because Maruti Suzuki provides more
features at a little more price than nano. Sample chose Datsun go as a second biggest competitors of
nano which was then newly established brand in India (15th July 2013). Renault KWID is chosen
by 37% of the sample while nano had face the least competition from Hyundai EON according to
32.5% of the respondents. As I interviewed some of my respondents, I come to know that the least
preference for Hyundai EON is because of its safety reasons.
Question 19: Do you prefer to purchase the NANO instead of a bike?
Criteria Frequency Percentage
Yes 82 41%
No 103 51.5%
Maybe 15 7.5%
Total 200 100%
Table 4.2 Preference on purchase of nano over bike
Question 20: If no, why don’t you prefer NANO over bike?

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Difficult to get driving license 33
High maintainance cost 56

PROBLEMS
Trafic issues 66
Parking issues 51
0 10 20 30 40 50 60 70
RESPONDENTS
Figure 4.14 Problem faced by respondents
Interpretation:
As we can see in the above table 82 respondents prefer the car over a bike but on the other hand,
103 respondents which covers 51.5% of the sample deny to choose the car over a bike because of
several problems. As I interviewed some of my respondents, I found out that 41% of the sample
prefer the car over the bike because they feel car carry the whole family at the same time and
seating space is better in a car, that leads to more comfort.
India reported 0.9 per 1000 vehicles in 2012, and an 11.35 fatality rate per 100,000 people in 2015
which cause heavy traffic issues, that’s why the majority (66) of the respondents refuse to buy the
car over a bike. 56 respondents choose a bike over the car because car requires higher maintenance
cost while in India people favours vehicle which requires less maintenance. Also, 51 respondents
don't like to buy a car because of parking issues. Getting a driving licence of the car is more
difficult than a bike’s thus 33 respondents stick with the bike.

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Question 21: According to you, what should be the price of Tata Nano with
respect of features they provide?

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90 45.00%
80 39.50% 40.00%
70 35.00%
33.00%
60 30.00%
PERCENTAGE
50 25.00%
RESPONDENTS
19.50%
40 20.00%
30 15.00%
8.00%
20 10.00%
10 5.00%
0 0.00%
1 lakh - 1.25 lakh 1.25 lakh - 1.5 lakh 1.5 lakh - 1.75 lakh 1.75lakh - 2 lakh
PRICE RANGE
Figure 4.15 Opinion of respondents on Price range of tata nano
Interpretation:
As we see above tata nano provides various features like entertainment features, safety features, and
comfort features but is it enough with respect to price they charge. 39.5% of the sample feels tata
nano price should be between 1 lakh to 1.25 lakh with respect to features they provide. 65 0ut of
200 respondents ready to pay price between 1.25 lakh to 1.5 lakh for tata nano. 19.5% of the sample
believes that nano provides enough features that they can pay price between 1.5 lakh to 1.75 lakh
for it. Only 8% respondents ready to buy nano between price of 1.75 lakh – 2 lakh. As I
interviewed some of my respondents I found out that only 8% respondents ready to pay price more
than 1.75 lakh because they prefer to buy maruti suzuki alto, which provide more features in same
price range.
PERSONAL INFORMATION ANALYSIS

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1) Gender
Count of gender
Interpretation:
I have taken 200 people to know reasons behind failure of tata nano. I have receive the majority of
response from male and the least response from female. This shows that the least amount of female
drives car out of the total sample. This is a drawback for tata nano because this sample represents
population , and Surat has 44% women population.
2) AGE

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Count of Age group
Interpretation:
As you can see in the above donut chart, the majority (33%) of the respondents belong to age
between 20 – 25 while the second highest (21.5%) responses come from the age group of 36 – 40.
36 out of 200 respondents which covers 18% of the sample comes from the age group above 40.
27.5% of respondents are aged between 26 to 35 according to the chart.
3) Marital status

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Count of Marital status
Interpretation:
After analyse the martial status data of respondents we may interpret that married people likes to
drive a nano rather than unmarried. As we can see 55.5% of the respondents are married while
44.5% of the unmarried sample give opinion on failure of tata nano.
4) Occupation

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Count of occupation
Interpretation:
As we can observe in the above pie chart that 32.8% of the sample who owns car are employed
while 21.9% respondents are a business person who owns nano. 28.6% which is the second-highest
occupation chosen by the respondents are self-employed. homemakers have less income or no
income that do not own a car that’s why only 16.7% of respondents who are homemakers own a
nano which is the least in the total sample.
5) Income (Monthly basis)

FAILURE
80 40.00%
70 67 35.00%
60 30.00%
50 25.00%
PERCENTAGE
RESPONDENTS
44 43
40 20.00%
30 26 15.00%
20
20 10.00%
10 5.00%
0 0.00%
Less than 20000 20000 - 30000 30000 - 40000 40000 - 50000 More than
50000
Income GROUP
Count of income
Interpretation:
It has been found by observing from chart that the majority of the sample which represents the
population have income below 20000, we may conclude that people with less income buy nano
because it is affordable for them. 43.5% of the sample has income below 40000 while only 10% of
respondents own nano who has monthly income more than 50000. As I interviewed some of my
respondents, I found out that There is a less people who buy nano with monthly income more than
40000 because they prefer other cars like Maruti alto 800, Datsun go and Renault KWID which
gives more features by charging slightly higher prices.
CHI-SQUARE TESTS
1) To know relationship between gender and nano’s preference over bike

FAILURE
H0: There is no significant relationship between gender and nano’s preference over bike
H1: There is significant relationship between gender and nano’s preference over bike
Gender * Nano’s preference over a bike Crosstabulation
Nano’s preference over a bike Total
Maybe No Yes
Count 8 37 26 71
Female Expected Count 5.3 36.6 29.1 71.0
% within Gender 11.3% 52.1% 36.6% 100.0%
Count 7 66 55 128
Gender Male Expected Count 9.6 65.9 52.5 128.0
% within Gender 5.5% 51.6% 43.0% 100.0%
Count 0 0 1 1
Prefer not to say Expected Count .1 .5 .4 1.0
% within Gender 0.0% 0.0% 100.0% 100.0%

Count 15 103 82 200
Total Expected Count 15.0 103.0 82.0 200.0
% within Gender 7.5% 51.5% 41.0% 100.0%
Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
Pearson Chi-Square 3.946

a
4 .413
Likelihood Ratio 4.193 4 .381
N of Valid Cases 200
Interpretation:
Here significance value is 0.413 which is less than 0.05, thus we fail to reject H0, hence there is no
significance relationship between gender and nano’s preference over car.
2) To know is there any relationship between gender and nano’s seating and
spacing
H0: There is no significant relationship between Gender and Nano’s seating and spacing.
H1: There is a significant relationship between income and Nano’s seating and spacing.
FAILURE
Gender * Seating and spacing Crosstabulation
Seating and spacing Total
Agree Disagree Neutral Strongly Strongly

Agree Disagree
Count 27 8 14 17 5 71
Female % within 38.0% 11.3% 19.7% 23.9% 7.0% 100.0%
Gender
Count 43 13 23 44 5 128
Gender Male % within 33.6% 10.2% 18.0% 34.4% 3.9% 100.0%
Gender
Count 1 0 0 0 0 1
Prefer not to
% within 100.0% 0.0% 0.0% 0.0% 0.0% 100.0%
say
Gender
Count 71 21 37 61 10 200
Total % within 35.5% 10.5% 18.5% 30.5% 5.0% 100.0%
Gender
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 4.736a 8 .785

Interpretation:
Here significance value is 0.785 which is more than 0.05, thus we fail to reject H1, hence there is
a significant relationship between gender and nano’s seating and spacing. But Phi Cramer’s V
value is 0.154, which proves the relationship between the two variables is weak.
3) To know is there any relationship between income and warranty period
H0: There is no significant relationship between income and warranty period.

H1: There is a significant relationship between income and warranty period.

FAILURE
Income * Warranty period Crosstabulation
Warranty period Total
100000 65000 75000 85000

KMS KMS KMS KMS
Count 4 1 1 0 3 9
% within 44.4% 11.1% 11.1% 0.0% 33.3% 100.0%

Income
Count 8 6 10 9 9 42
20000 - 30000 % within 19.0% 14.3% 23.8% 21.4% 21.4% 100.0%
Income
Count 12 3 10 9 7 41
30000 - 40000 % within 29.3% 7.3% 24.4% 22.0% 17.1% 100.0%
Income
Income
Count 5 1 7 6 6 25
40000 - 50000 % within 20.0% 4.0% 28.0% 24.0% 24.0% 100.0%
Income
Count 17 5 18 16 8 64
Less than
% within 26.6% 7.8% 28.1% 25.0% 12.5% 100.0%
20000
Income
Count 7 1 0 7 4 19
More than
% within 36.8% 5.3% 0.0% 36.8% 21.1% 100.0%
50000
Income
Count 53 17 46 47 37 200
Total % within 26.5% 8.5% 23.0% 23.5% 18.5% 100.0%
Income
Chi-Square Tests

Interpretation:
Here significance value is 0.544 which is more than 0.05, thus we fail to reject H1, hence there is a
significant relationship between income and warranty period. Also Phi Cramer’s V value is 0.305,
which proves that the relationship between the two variables is very strong.
FAILURE
4) To know is there any relationship between age and awareness for nano
H0: There is no significant relationship between age and awareness for nano.
H1: There is a significant relationship between age and awareness for nano.
Age * Awareness Crosstabulation
Awareness Total
No Yes
Count 0 3 63 66
20 - 25
% within Age 0.0% 4.5% 95.5% 100.0%
Count 0 2 21 23
26 - 30
% within Age 0.0% 8.7% 91.3% 100.0%
Count 0 1 31 32
31 - 35
% within Age 0.0% 3.1% 96.9% 100.0%
Age
Count 0 1 42 43
36 - 40
% within Age 0.0% 2.3% 97.7% 100.0%
Count 1 2 33 36
Above 40
% within Age 2.8% 5.6% 91.7% 100.0%
Count 0 0 1 1
Age
% within Age 0.0% 0.0% 100.0% 100.0%
Count 1 9 191 201
Total
% within Age 0.5% 4.5% 95.0% 100.0%
Chi-Square Tests


FAILURE
Symmetric Measures
Value Approx. Sig.
Phi .034 .993

Nominal by Nominal
Cramer's V .034 .993
Interpretation:
Here significance value is 0.786 which is more than 0.05, thus we fail to reject H1, hence there is a
significant relationship between income and warranty period, But Phi Cramer’s V value is 0.178,
which proves that the relationship between the two variables is very weak.
5) To know is there any relationship between reliability of nano and age
H0: There is no significant relationship between reliability of nano and age.

H1: There is a significant relationship between reliability of nano and age.

FAILURE
Age * Reliability Crosstabulation
Reliability Total
No Yes
Count 0 24 42 66
20 - 25
% within Age 0.0% 36.4% 63.6% 100.0%
Count 0 11 12 23
26 - 30
% within Age 0.0% 47.8% 52.2% 100.0%
Count 0 8 24 32
31 - 35
% within Age 0.0% 25.0% 75.0% 100.0%
Age
Count 0 12 31 43
36 - 40
% within Age 0.0% 27.9% 72.1% 100.0%
Count 1 9 26 36
Above 40
% within Age 2.8% 25.0% 72.2% 100.0%
Count 0 0 1 1
Age
% within Age 0.0% 0.0% 100.0% 100.0%
Count 1 64 136 201
Total
% within Age 0.5% 31.8% 67.7% 100.0%
Chi-Square Tests

Interpretation:
Here significance value is 0.441 which is less than 0.05, thus we fail to reject H0, hence there is a
no significant relationship between reliability and age

FAILURE
CHAPTER 5: MAJOR FINDINGS
MAJOR FINDINGS AND CONCLUSION
1) The Nano was marketed as the “One lakh Rupee” car but after some time Tata was not able to
keep up with that price and the on-road price for a base variant Nano started to come around
2.59 lakhs which defeated their marketing campaign for the car.
FAILURE
2) Males in the age group 20-25 and 26-35 want to use it as a family car for shopping and
travelling. And the age group of 36-45 give their preference for NANO to offer it to their
children.
3) There is a significant relationship between gender and spacing of nano. Men requires more
spacing in comparison of women but Women had a higher prevalence of severe obesity (11.5%)
than men (6.9%). The prevalence was highest among adults aged 40–59 (11.5%), followed by
adults aged 20–39 (9.1%) and adults aged 60 and over (5.8%).
4) Tata Nano right from the beginning was a product that Tata Motors thought is something that
the customers need and was never the outcome of an assessment program of what the customers
possibly needed. This approach didn’t bode well for the sales of Nano.
5) Tata Nano was marketed as the “cheapest car in the world”. Unfortunately, this strategy didn’t
work in favour of the Nano as it immediately gained a reputation of a “cheap car” amongst the
consumers who don’t want to get associated with a low-end car especially in the urban sector.
6) To avoid being associated with a ‘cheap car’, the Indian consumers were witnessed going for a
used car from a segment above than buying a Nano. The automaker was under the
misconception that the low price would be enough to motivate people to buy the Nano. They
did not account for their positioning it as a cheap vehicle which, in India's markets, translates to
low quality.
7) The Nano had poor ride comfort and stability issues due to the lightweight body. Tata focused

on making the car as affordable as possible, so much so that it influenced the use of cheap and
inadequate materials which resulted in a very poor built quality.
8) There is a significant relationship warranty & income. People with less income demands more
warranty period than people with more income.

FAILURE
9) The reason behind it was the lack of a correct strategy for a product like this, firstly Tata motors
couldn’t reach out to its target market since their dealer network was situated only in the urban
areas while the target market was situated in towns and villages. Their target market wasn’t
familiar with the car-buying experience and the company was not able to bridge that gap.
10) The argument that Tata Nano had cheap material is absolutely false. It has had the most
innovatively designed parts with quality. It will any day put to the basic KWID versions
interiors to same.
11) Gujarat government has refused to extend the tax incentives offered to the Nano car to Tata

Motors' other models that will be manufactured from the Sanand Nano factory near
Ahmedabad. Taxes high, government could have given them 5 years with say 10%tax instead of
about 30%
12) Two-wheelers are a nimble little vehicle that let people navigate through traffic easily, while
parking is rarely an issue. The same could not be said about the Nano. So, a major issue with it
was that it was not a motorbike. While it was small, it simply was not small and convenient
enough for people who were used to motorbikes. That was a major issue in the Nano’s
marketability that the automaker had not even considered.
13) One of the most challenging aspects of marketing a vehicle like the Nano is advertising. A basic
rule of advertising is to create an emotional connection or a bond with the audience that makes
them want to experience the product. Tata failed to do so with their advertisements for the
Nano. While some TV commercials were fairly good, most of their audiences simply could not
relate to what they were seeing on screen. If the bad positioning was not enough, the fact that
people also could not relate to the advertisements made things a lot worse.
14) One of the most significant problems with the Nano was its safety rating. The manufacturer
expected the Nano to receive four stars in the Euro New Car Assessment Program (NCAP)
crash test. But, when Allgemeiner Deutscher Automobile-Club (ADAC), a German automobile
club, tested it in 2014, it failed miserably. The Nano lacked airbags and proper adult protection.
It also did not meet basic UN safety requirements and was not as safe as Tata had claimed and
expected it to be.

FAILURE
15) The Nano was also very lightweight which made it a very bad choice for the usual Indian roads
which are not always smooth as silk. That also meant that it felt unsafe to drive because of the
simple lack of bulk.
16) The automaker’s bad public relations did not improve matters. The company simply ignored
this crucial aspect and, while everyone focused on how many units caught fire, no one talked
about how many were running on the roads just fine. That also convinced the general public
that the Tata car was so cheap because the company cut corners in the manufacturing process.
17) Premature clutch wear. Everyone knows that Tata Nano was a rear-engine, rear-wheel drive.
So, this means that the power is sent to the rear wheels. With that clear, Tata Nano had a
common problem of premature clutch wear.

FAILURE
CONCLUSION
There is a general common perception about the car. And you know, that perception isn't always a
reflection of the reality.
The car looks lightweight but has decent amount of power. While driving in the city, It never felt
that It was compromising on power, pickup etc. This also has to do with the fact that in Indian
cities, there isn't much of a scope to go beyond 60-70 kmph due to the traffic and small roads and
the car can do handle that very well. But the best part about the car was the ease with which it could
be manevoured in traffic. It could also squeeze into smaller spaces much like the rickshaws do.
Based on my experience, I can say that it is a great fit for crowded cities, and for smaller families.
Even for relatively affluent people, it is a great option of a second car for activities like dropping
kids to school, or going shopping to market etc.
Back to the image of the car, while technically it may be a miracle; it is known more being an
affordable car rather than an efficient car. Maybe the initial marketing behind it did that on purpose.
But it did the brand more harm than good. Now there is one thing about Indians. Indians are cheap,
but they hate to admit that they are cheap. Since the car is considered cheap, many people didn't go
for it even though it would fulfil their needs very well.
In short, the people think of it as cheap, convenient, cute but also unsafe and not powerful/equipped
enough.

FAILURE
CHAPTER 6: BIBILOGRAPHY
BIBILOGRAPHY
FAILURE
6.1. Books referred
1) Haig, M. (2005), brand Failures: The truth about the 100 largest branding mistakes of all time.
Sheffield: Kogan page ltd.
2) Kotler, P., Keller, K.L., Ang, S.H., Tan, C. (2018), Marketing management: An Asian
perspective.
Singapore: Pearson education south Asia private ltd.
3) Trout, J., & Ries, A.L. (2014), Positioning: The Battle for Your Mind. New York, NY: McGraw
Hill station.
4) William, T., Gregory, G.C., Williams, J.M., Wayne, C.B., & Joseph, B. (2016), The craft of
research. Chicago: The university of Chicago press
5) Crowe, A. (2016), Alpha project managers. Kennesaw: Velociteach press
6.2. Journals/Articles
1) Fan, Y. (2005). Ethical branding and corporate reputation. Corporate communications: An
international journal.
2) Carlberg, O., & Kjellberg, O. (2018). Branding in the automotive industry: The role of product
experience in the buying process of the premium segment.

FAILURE
3) Hunt, S. D. (2019). The ethics of branding, customer-brand relationships, brand-equity strategy,
and branding as a societal institution. Journal of Business Research, 95, 408-416.
4) Saeed, K., & Siddiqui, K. (2016). Brand failure: Factor Analytic Findings. Journal of Marketing
Management and Consumer Behavior, 1(3), 1-12.
5) Palepu, K., Anand, B. N., & Tahilyani, R. (2011). Tata Nano-The People's Car. Harvard
Business School Strategy Unit Case, (710-420).
6) Wells, P. (2010). The Tata Nano, the global ‘value’segment and the implications for the
traditional automotive industry regions. Cambridge Journal of Regions, Economy and Society, 3(3),
443-457.
6.3. Weblinks
https://www.cardekho.com/tata/nano/variants.htm
https://gomechanic.in/blog/best-ground-clearance-in-india/
https://en.wikipedia.org/wiki/Tata_Nano
https://www.carwale.com/tata-cars/nano/
https://www.bbc.com/news/world-asia-india-16427707
https://youtu.be/J5z6AYuhUKQ

FAILURE
CHAPTER 7: ANNEXURE

FAILURE
ANNEXTURE
Hello,
I am Yash rana Currently pursuing BBA from BRCM College of Business administration, I am
conducting a survey on " WHY DID TATA NANO FAIL? as a part of our curriculum for a winter
project. I kindly request you to lend a few minutes to fill up this survey form. it will be a great help.
Your responses will be used to find the reasons behind the failure of India's smallest car tata nano
Information provided by you will only be used for academic purposes and will be kept confidential.
TATA NANO
Tata’s Nano is a special car. It’s a car that started its journey more than half-a-decade back as
India’s most affordable four-wheeled offering but has been suffering from an underwhelming
response, to say the least. Ratan Tata’s dream of delivering a One Lakh Rupee Car to the world,
very soon, became a lesson in marketing don’ts.
1) Are you aware about Tata Nano?
○ Yes
○ No
2) pricing more than what was promised by the company caused NANO’s failure
○ Strongly Agree
○ Agree
○ Neutral
FAILURE
○ Disagree
○ Strongly Disagree
3) TATA NANO is cheap / economical / affordable and compact car as compared to other cars in
small car segment
○ Strongly Agree
○ Agree
○ Neutral
○ Disagree
4) NANO has enough seating capacity & spacing to label as family car
○ Strongly Agree
○ Agree
○ Neutral
○ Disagree
5) NANO’s less fuel tank capacity as compare to other compact car cause its failure
○ Strongly Agree
○ Agree
○ Neutral
○ Disagree
FAILURE
6) TATA marketed NANO as world’s cheapest car. Marketing of NANO as cheapest car was a
mistake
○ Strongly Agree
○ Agree
○ Neutral
○ Disagree
RELIABILITY OF CAR
Owners of cars that primarily drive around town might define reliable as a car that doesn't need
anything more than normal repairs (oil changes, brake jobs, tires).
7) Do you think NANO was reliable car?
○ Yes
○ No
8) I think Lack of practicality in Tata Nano cause its failure
○ Strongly Agree
○ Agree
○ Neutral
○ Disagree

FAILURE
9) I think Emotionally Disconnected Advertising of Tata Nano cause its failure
○ Strongly Agree
○ Agree
○ Neutral
○ Disagree
10) I think Poor Build Quality of Tata Nano cause its failure
○ Strongly Agree
○ Agree
○ Neutral
○ Disagree
11) I think production issues of Tata Nano cause its failure
○ Strongly Agree
○ Agree
○ Neutral
○ Disagree

FAILURE
 COMFORT FEATURES
12) I think Nano failed because its vanity mirror was not as good as compared to other similar cars
1 2 3 4 5
Strongly Agree ○ ○ ○ ○ ○ Strongly Disagree
13) I think Tata Nano fail because of its Height adjustable front seat belts was not as good as
compared to other similar cars
1 2 3 4 5
14) I think Tata Nano fail because of its law fuel warning light was not as good as compared to
other similar cars
1 2 3 4 5
15) I think Tata Nano fail because of its Air conditioner was not as good as compared to other
similar cars
1 2 3 4 5

FAILURE
16) I think Tata Nano fail because of its Heater was not as good as compared to other similar cars
1 2 3 4 5
 SAFETY FEATURES
17) I think Tata Nano fail because of its power door locks was not as good as compared to other
similar cars
1 2 3 4 5
18) I think Tata Nano fail because of its clutch lock was not as good as compared to other similar
cars
1 2 3 4 5
19) I think Tata Nano fail because of its Front & rear seat belts was not as good as compared to
other similar cars.
1 2 3 4 5

FAILURE
20) I think Tata Nano fail because of its automatic headlamps was not as good as compared to
other similar cars
1 2 3 4 5
21) I think Tata Nano fail because of its central locking was not as good as compared to other
similar cars
1 2 3 4 5
 RANKING QUESTIONS
22) Rank the comfort features which NANO should have included in design to avoid failure
Comfort features 1 2 3 4 5 6
Cruise control
Parking sensor
Power steering
Rear camera
Trunk light
Keyless entry

FAILURE
23) Rank the safety features which NANO should have included in design to avoid failure
Safety features 1 2 3 4 5 6
Crash sensor
Adjustable seats
Dual stage airbag
Antilock breaking
system
Anti theft alarm
Central locking
24) Which entertainment, communication, information features should NANO have add? (You can
choose multiple options)
☐ CD player
☐ Internal hard drive
☐ Integrated antenna
☐ Display screen for rear passenger
☐ IPOD capability
☐ DVD playback
☐ Speaker front

FAILURE
WARRANTY PERIOD
A warranty period is the period of time that warrant free repair and adjustment services in case of a
malfunction occurred under normal use that has followed instruction manuals.
25) Do you think less warranty period of NANO as compare to other compact cars cause its
failure?
○ Yes
○ No
26) If yes then How much warranty period NANO should have given? (In term of KMS)
○ 65000 KMS
○ 75000 KMS
○ 85000 KMS
○ 100000 KMS
GROUND CLEARANCE
Ground clearance is the minimum amount of distance between the bottom of the vehicle body and
the ground.
27) Do you think that low ground clearance of NANO played a role in its failure?
○ Yes
○ No
FAILURE
○ Maybe
28) If yes then How much ground clearance should NANO have? (Skip if you had chosen NO)
○ 165 MM
○ 170 MM
○ 175 MM
○ 180+ MM
29) Nano was introduced as a Petrol car, do you think that Tata should have introduce alternate
fuel type at earlier life stage of nano?
○ Yes
○ No
○ Maybe
30) Do you think that tata nano had good after sales services?
○ Yes
○ No
○ Maybe

FAILURE
RESIDUAL VALUE
The residual value, also known as salvage value, is the estimated value of a fixed asset at the end of
its lease term or useful life
31) Do you think less residual value of NANO cause it’s failure?
○ Yes
○ No
○ Maybe
32) According to you, which competitor car played a huge role in a NANO’s failure? (You can
choose multiple options)
☐ Renault KWID
☐ Datsun GO
☐ Maruti Alto
☐ Hyundai EON
33) Do you prefer to purchase the NANO instead of a bike?
○ Yes
○ No
○ Maybe
34) If no, why don’t you prefer NANO over bike? (Skip if you had chosen YES)
☐ Parking issues
FAILURE
☐ Traffic issues
☐ High maintenance cost
☐ Difficult to get driving license
35) According to you, what should be the price of Tata Nano with respect of features they provide?
○ 1 lakh – 1.25 lakh

○ 1.25 lakh – 1.5 lakh
○ 1.5 lakh – 1.75 lakh
○ 1.75 lakh – 2 lakh

FAILURE
Personal information
1) Name
2) Age
○ 20 - 25
○ 26 - 30
○ 31 - 35
○ 36 - 40
○ Above 40
3) Gender
○ Male
○ Female
4) Marital status
○ Married
○ Unmarried
5) Occupation

FAILURE
○ Employed
○ Self-Employed
○ Business person
○ Homemaker
6) Income
Less than 20000

20000 – 30000
30000 – 40000
40000 – 50000
More than 50000

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WHAT MADE TATA NANO A 1

BRCM COLLEGE OF BUSINESS ADMINISTRATION

1.1. Brand failures

BRCM COLLEGE OF BUSINESS ADMINISTRATION

1.1.1. Why focus on failure?

1.1.2. Why brands fail

while branding Scott Bedbury, Starbucks former vice-president of marketing controversially

BRCM COLLEGE OF BUSINESS ADMINISTRATION

 Comparative analysis of earlier work in brand failure

Matt Haig Kumar & Murthy Kotler & Keller Narayanan

Brand amnesia Failure to fully

Brand deception Wrong positioning Failure to live up to Benefits of the brand

Brand ego Lack of viable Failure to adequately Poor timing of launch

Brand fatigue Lack of attention paid Failure to balance

Brand irrelevance Unrealistic features Failure to be patient Irrelevant Product

Brand megalomania Falling in the brand Failure to understand Brand Dilution

BRCM COLLEGE OF BUSINESS ADMINISTRATION

1.1.3. Brand myths

BRCM COLLEGE OF BUSINESS ADMINISTRATION

1.2. Introduction of Tata Nano

BRCM COLLEGE OF BUSINESS ADMINISTRATION

1.2.2. Tata Nano variants

Variants Price Fuel type Transmission ARAI Millage

Diesel 2.00 lakh Diesel Manual 33.0 kmpl

XE 2.35 lakh Petrol Manual 23.9 kmpl

Hybrid 2.50 lakh Electric Manual -

XM 2.72 lakh Petrol Manual 23.9 kmpl

XT 2.92 lakh Petrol Manual 23.9 kmpl

CNG XM 2.96 lakh CNG Manual 36 kmpl

XMA 3.14 lakh Petrol Automatic 21.9 kmpl

XTA 3.36 lakh Petrol Automatic 21.9 kmpl

1.2.3. Cost-cutting features

BRCM COLLEGE OF BUSINESS ADMINISTRATION

Tata Nano Maruti Alto 800

No base power steering due to light weight. Added Power steering only in higher variants.

Three lug nuts per wheel Four lug nuts per wheel

Radio or CD player Radio or CD player

No airbags on any model No airbag in any variant.

No air conditioning in base model No air conditioning in base model

BRCM COLLEGE OF BUSINESS ADMINISTRATION

FY 2017-2018 April - October 1,502

1.2.5. Tata Nano export

 Tata Nano Europa

BRCM COLLEGE OF BUSINESS ADMINISTRATION

1.2.6. Award and achievements

 2010 Business Standard Motoring Indian car of the year

1.2.6. End of production

BRCM COLLEGE OF BUSINESS ADMINISTRATION

1.3. Failed compact cars in India and reasons behind it

1) Maruti Suzuki Kizashi

What went wrong?

BRCM COLLEGE OF BUSINESS ADMINISTRATION

What went wrong?

What went wrong?

BRCM COLLEGE OF BUSINESS ADMINISTRATION

What went wrong?

5) Mahindra Renault Logan