CASE STUDY ON TATA NANO

During the launching of the car its price went higher by 20-50percent of the proposed price that was one lakh. Depending on the looks and features used to create the car, it was too expensive for the lower middle class and too shabby for the upper middle class to buy it. The targeted group of people didn’t see the car as option for driving for long distances, due to its low engine displacement.Production delaysTata also faced political problems and had to shift the plant location, which led to production delays.

Transfer of the whole plant significantly added to the product’s cost. The initial waiting period was too high, making several customers go away empty handed when the company could have potentially flooded the market.Product deficienciesIt is the intercity transportation that middle class often needs the car.. However, due to low ground clearance, Nano is terrible on these roads. Also, within a few months of initial sales, technical problems were found in the product and reports of Nano catching fire weakened the trust for the brand as a whole.

 Inability to manage public relationsTata Nano was impossible to drive on hilly areas; therefore the middle-class people didn’t see the need for purchasing such a car. Its initial sales dropped after a few months when the car was found to have technical problems. Reports of Nano catching fire weakened the trust of the brand as a whole in the market.Attitudinal issueTata has traditionally been an SUV and HCV manufacturer, making products with low volumes and high margins.

Get quality help now

KarrieWrites

Verified

Proficient in: Transport

5 (339)

“ KarrieWrites did such a phenomenal job on this assignment! He completed it prior to its deadline and was thorough and informative. ”

+84 relevant experts are online

Hire writer

In the case of Nano, the matrices went upside down. The team wasn’t aligned attitude wise, to push for the desired number of vehicles that needed to be sold for a low margin product.