CASE ANALYSIS:

POSITIONING THE
TATA NANO
Defining Key Issues

● Lack of clarity on how to position their product in the market

● The question of how to maintain their quality standards for product
development, at a cheaper cost
● Capturing of competitive market as new competition arises
● Plant capacity/place - how to produce for a huge demand of cars
Decision Problem

How should Tata Nano position itself to

capture a major portion in this
competitive market?
Alternatives

A few alternatives that the company could implement are:

● To position their product as a substitute for two-wheelers

● To focus on a specific segment of the population
● To add a new variant which competes with Maruti Suzuki-800, Alto and other
small cars
Decision Criterion

● Which market should the company aim for - the two wheeler or the lower-priced
car industry?
● Which particular features should be present in the Tata Nano model? Which
features are unnecessary and should be removed?
● A Nano with less features would be difficult to market. How would Tata, a brand
known for quality, maintain trustworthiness and loyalty with its customers?
Evaluation of Alternatives

● It should target both customers for mini cars as well as two-wheelers as Tata
aims to create a low cost ‘people’s car’
● It should focus more on middle income group as it aims to improve the quality of
life
● Provision of less facilities at Rupees 1,00,000 is acceptable because the company
can not compromise with the quality of the car.
Developing Plan and Implementation

● Necessary features to be provided in the Rs 1,00,000 model to show it as a cost-

friendly vehicle
● Campaigns promoting Nano as a solution for both two-wheeler and small car
owners
THANK YOU!

Group Members:

Anant Kumar Jain - 281066

Ayushi Vohra - 281071
Mayank Saluja - 281086
Neeharika Khanna - 281090
Siddharth Grover - 281107
Soumya Agarwal - 281111