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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