CASE STUDYANALYSIS
WHY DID NANO FAIL ?
Submitted By
Shubham Tyagi
MBA
2nd Shift
Submitted To
Maitri Sawarn
Asst. prof.

COMPETITOR CUSTOMER
नह ीं हो सकता
हो जयेगा तो
मजा आ जयेगा
Not Possible
If done it will be a
great
achievement

A CAR WHICH WAS PRICED ONLY A
LITTLE HIGHER THAN IPHONE
TATA NANO IPHONE

EYE BALL ATTENTION
ATTENTION SEEKING POTENTIAL

PRESIDENT OBAMA IN INDIA
PRESIDENT OBAMA PRAISES THE NANO CAR

HYPE

MARKETING CAMPAIGN
An Organized Course Of Action to Promote And Sell
a Product or Service.
TATA NANO ON SOCIAL media

MARKETING TEAM

BRANDING

No one wants to own a car, that showcases as
cheapest car.

STRENGTH & WEAKNESS
Price was Strength but Positioning was weakness
HIDDEN
Narrow
POSITIONING
PRICE

Productio
n
Cost
saving
Engineering

SELECT WRONG TARGET AUDIENCE
Tata Motors basically Segmented and targeted the following
groups of Indian population:
1.Small City
2.Villager
3.Middle class
•Mainly the lower middle class
•Upper lower class
4. Usually the two-wheeler users.
5.. Family with 3-4 members who have troubles while
travelling on a 2-wheeler.
In City Family are Leaner & Road are Cleaner

VALUE PROPOSITION
EMOTIONAL
VALUE
FINANCIAL
VALUE
RELATIONAL
VALUE
PERFORMANC
E VALUE

EMOTIONAL VALUE
Aspirational value
Luxury item
Religious Beliefs
Social Beliefs

EMOTIONAL
POSITIONING

 40000 protestors in singur complaining about
abduction of farmer lands.
 The company had to shift the Nano project to
Sanand in Gujarat on October 3, 2008, following
intense protests against acquisition of
farmlands, led by Mamata Banerjee's Trinamool
Congress.
 They demanded that the land should move back
to the agriculturists and giving the money which
they had paid at the time of land acquisition.
 Couldn’t operate in hostile situation in Kolkata.
FINANCIAL VALUE

FINANCIAL VALUE

FINANCIAL VALUE

PERFORMANCE VALUE
Innovative Features
Quality
Fashionable
Leader

INCIDENT AND ACCIDENT
There were several incidents of the vehicle catching fire too.
A lot of fiber and plastic was used instead of steel to keep the weight of the car low.
MARKETING TEAM - POSITIVE REBUTTAL
all competitor spread negative activity about Tata Nano

RELATIONAL VALUE
Change in Product
Extra
Speed
Achieve Timeline
Service

TATA FIRST DELAYED THE NANO LAUNCH 22 MONTHS
Tata Motors announced in 2006 that the Nano would be
manufactured in Singur, West Bengal. Local farmers soon began
protesting the forced acquisition of their land the new factory
entailed. Tata first delayed the Nano launch and later decided to
build the car in a different state, Gujarat, instead.

4 QUADRANTS
EMOTIONAL
VALUE
FINANCIAL
VALUE
RELATIONAL
VALUE
PERFORMANC
E VALUE

CONCLUSION
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 marketer just need to place their product right in the minds of
customer and the brands like Armani, Raymond‘s, Toyota and even other brands of
Tata are examples of that. So positioning remains the main mantra behind the
success of any product.