Marketing Strategy & Marketing Mix
Tata Nano: The People’s Car
Submitted By: Sohail Aziz
November 10, 2013
a. Nano is expected to change the automobile market in India. It would cater to a typical middle income Indian family of four who wants to avoid rain, wind and dust. It’s freedom for four, according to Dilip Chenoy, Society of India Automobile Manufactureres.
b. In spring 2008, Tata delaers expressed excitement about the Nano, saying many dealers had already inquired about it. One dealer characterized the market as middle-class and college students. “Almost 50% of college going students go for bike,” he said, “which costs around a minimum of 40,000 to 50,000 rupees, and they don’t worry to shell out 50,000 more if they are getting a more comfortable, safe, and spacious journey. Families would no doubt feel the same way. “Although two-wheelers offered twice as many miles to the gallon, “safety and comfort are the key words that the Tata Nano assures, which is driving force for the success of this car.”
c. Even if Nano manages to convert 10% of the two wheeler market of about seven million, it will have almost 50% share of the car market. Nano may lead to 20% reduction in prices of two wheelers and 35% decline in prices of secondhand cars, according to industry chamber ASSOCHAM.
d. The Nano would also be a viable alternative to a used car, some dealers said, “As it is” , said a Karol Bagh dealer of the used Marutis, “there are no buyers for 95-96, model. They sell for just [INR 25,000 and are mostly picked up by scrap dealers”. “Nano could surely put a dent in the secondhand car market for even new models”, said another dealer.
e. Nano was one of the world’s most efficient cars, getting 22 km per liter in the city and 26 km per liter on the highway. Measuring 3.1 meters by 1.5 meters, it displaced Maruti Udyog’s 800 as the world’s smallest car,...