Case Presentationon

Tata Nano

Group Presenter: Shyam Sundar GourIndian Institute of Management Kolkata (IIMC)

EPSM 08Speak:+919351961181

Jodhpur (Rajasthan)

Blue Ocean Strategy of Mr Ratan Tata with Tata Nano

Business Strategy of Tata Motors with Nano To create a new passenger car category Grab the Price Sensitivity of India potential Car Owners. Target the customers of Two-Wheelers (8.5 Million in FY 2009.)Industry Potential Indian Population Large and Increasing Middle Class Segment Increasing Disposable Income Low Penetration of Car’s as compared to U.S.(12 per 1000 versus 765 per 1000 in U.S.)Positioning from 2007-2009 “People’s Car” “World’s cheapest Car”Sales Goal 350000 in First Year Then 1 Million

Performance?

Average Passenger Car Sales: 2.5 – 3 Million

Year Nano Sales (*as per Siam)

FY10 30350

FY11 70432

FY12 74527

FY13 53848

FY14 21129

Causes of Below expected success of Tata Nano

.Mileage

VsBikes

Low Performance

Features

Low Status Symbol

Brand Benefits Highlighted

Happiness of owning

a car

Expression of Love

Mileage

Modern Youth

USP’s of Tata Nano

Functional• Small Length and

Width• Fuel Tank: 24 Liters• AMT

Economical• Low Price• Mileage

Psychological• Variety of Colures• Central Locking etc

Target Segment Analysis: 2015 (As per Mckinsey Report)

Target Segment: Middle class Indian: 2500000 Indian (19% of Total Population in 2015)

Disposable Income: 2-10 LacsTransportation Expenses:

38000-190000 (19% of Total Disposable Income)

Profile: Increased Aspirations, Habitual for

Bargaining, Looking for the low prices.

Ongoing Campaign 2015

How will you position the Nano to achieve that goal?

Target Segment: Middle Class Young (20-30 Years old)

Geographic Profile: Living at Cities with busy traffic, Small Streets.

Pscygrophic Profile: Trendy, Using Latest Technology, Big Aspirations.

Positioning of Tata Nano: As a premium, unique gift to the for their some one special (Brother-Sister, Husband-Wife, Son-Father, Father-Daughter) as it offers convenience, safety, style, ease of driving.

Associations Planned: Festivals, Gifting Behaviour, Culture, Relationships.

Why is the recommended positioning strategy superior to other positioning strategies that might reasonably be considered?

General Considerations while choosing a gift

Joy of Gifting

Unique

RegularUtility

Something Big

Memorable

Word Of

Mouth

TrendyStylish

Colorful

Lowcost

Thanks