DINESH RAJU M

17TPMB025
 The inaugral day of the 11th Indian Auto Expo 2012 –
Ratan Naval Tata introduced the world cheapest car “
TATA NANO”.
 The car faced many hurdles like safety and quality
standards , catching fire , production delays etc..
 TATA Nano were lower and middle income families ,
who wants to upgrade to four wheeler from two
wheeler users.
 They were focused on the price factors and
development , so they used “price strategy” for Tata
Nano
 TATA Nano to become a “people’s car”
 It was positioned on the price attribute and was widely
showcased as the world cheapest car at 1lakh rupee
 In India there is perception called higher quality price
serves to higher quality and lower quality price serves
to lower quality.
 Nano catching fire which further weakened the name
for the brand Nano
 Tata Motor tried to correct 4p’s was re-engineered to
fix the issues related to the fire and customers were
offered free safety upgrades for the Tata Nano.They
tried to correct their faults like
 Promotions
 Distribution
 Financing
 Tata appointed an young scientists and assign them to
dream of building a low cost car .
 He gave lot of instructions to the project engineers to
wanted the car to be a low cost mass market
engineering product and designed with all safety
measures.
 It took about five years to finish this project.
 Safety standards
 Acquiring fertile agricultural land
 Relocation to Sanand
 Cancel their bookings
 Car catching fire
 Distribution strategy
 Tied up with Big Bazaar
 “Mega loan cum Exchange Mela”
 Extension of Warranty Period
 Maruti Alto
 Bajaj RE-60
 It also won many Prestigious Awards in India and
abroad.
 Although Tata Motor tried to improve their quality and
other things , it could not help to achieve their success.
 Nano positioning as a “cheap car” killed the
aspirational elements in the car and performance of the
model has been underwhelming over the years.