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Failure of Nano Car
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FAILURE OF NANO CAR
Akshat Goyal: 19010126204
Rahul Pansare : 19010126278
Rahul Radhakrishnan: 19010126273
Debaditya Majumdar: 19010126217
INTRODUCTION
Nano by TATA, introduced in 2009 was a car that had attracted many Indian families.
Features:
- Low price
- Adequate comfort
- Fuel-efficiency
- Safety
SET GOALS VS. REALITY
PLAN
- 2,50,000 units
- Highest Selling Car
- Owned by every household
REALITY
- 73,250 units
- Sales plummetted every year
- Stopped production in 2019
SET GOALS AND REALITY
REASONS BEHIND THE FAILURE OF NANO
REASONS BEHIND FAILURE
INSUFFICIENT FEATURES
INSUFFICIENT
FEATURES
The Nano car was launched with very limited features:
- One screen wiper
- No air conditioners
- One wing mirror
- No airbags
COMPETITION
Arrival of Ford Figo, Nissan Micra, Chevrolet Beat in the market provided for better substitutes at low prices.
COMPETITION
INEFFICIENT ADVERTISEMENTS
Tata Nano's advertising campaigns failed to establish the emotional connection with the target audience. This reflects on the company's poor marketing skills.
PRODUCTION ISSUES
PRODUCTION
ISSUES
- After, Tata could not acquire the land to set p its new plant in West Bengal, they had to manufacture cars at the Sanand Facility in Gujarat.
- Low production did not match with rising demands.
PERCEIVED VALUE
- The title of the “cheapest car” affected the perceived value of the product negatively, which lowered the demand for the car.
- Status conscious people do not want to drive cars that look cheap.
SAFETY ISSUES
SAFETY
ISSUES
- Failure of Crash Test
- No Airbags
- No Adult Protection
- Incidents of Nano catching fire
LOW QUALITY
LIGHTWEIGHT CAR
ON-ROAD ISSUES
LOW QUALITY
METAL SHEET AND PLASTIC BODY
EFFORTS BY TATA TO REVIVE THE BRAND IMAGE
ATTEMPTS BY TATA TO REVIVE THE BRAND IMAGE
- The Tata group's efforts were split into 2 primary phases, the intitial and the later phases.
INITIAL
PHASES
Analysis of consumer trends
INITIAL STAGES
Analysis of consumer trends
Reduction in price of the car to give incentives to customers.
Acquisition and rejuvenation of the Jaguar Land Rover (JLR) company.
Agressive marketing
Laying off staff
and slashing PR budgets
THE BREAK
THE BREAK
1
For a while the TATA management remained in limbo.
2
The idea of getting foreign and experts and analysts was floated
3
But the idea never came to fruition.
The idea of getting experts
4
Meanwhile, TATA focused on the JLR company which turning out to be profitable.
Then slowly the Tata group found an effective plan of action.
5
But the idea never came to fruition
THE LATER PHASES
THE HOME STRETCH
The Tata group undertook all possible efforts to let the Nano chapter of the company fade away.
The Tata company in the
later stages shifted focus
on its other well functioning
companies especially Jaguar Land Rover (JLR).
The Tata group ,using a mixture of goodwill, suppression and diversion thus was able to salvage its reputation.
CONCLUSION
- Failure of Nano to serve as a classic case study for future reference.
- Key learnings about the importance of efficient marketing, public relations, and customer service.
RECOMMENDATIONS
Tata Nano could have achieved success had it:
- Implemented better advertising campaigns
- Focused on protecting and promoting the brand image
- Provided better customer service
- Refined its look to match the status-quo
- Changed the idea of low price means low quality through better PR skills