FAILURE OF TATA
NANO- A LAKHTAKIYA CAR
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| Tata Nano |
When the Tata Nano was first
launched in Indian market. Its has got about 3 lakhs of pre-bookings. As, this is the
cheapest and most affordable car. The car was being manufactured very fastly.
But, with the time, when some incidents and accidents happened with Tata Nano,
people started re-thinking on their pre-bookings. Mind of the people changed,
and almost all the pre-bookings were cancelled. By the time, people changed
their mood for Tata Nano and started thinking it as the “cheapest” or
“lakhtakiya” car. People took this in wrong way and connected this with their
proud and integrity and a matter of their financial status. The tag of “cheapest
car” lead to the failure of Tata Nano.
TATA NANO AS A LAKHTAKIYA CAR
At the time when Tata Nano
was launched, it was very popular in social media and tagged as “The world’s
cheapest car” and “Lakhtakiya car” automatically, as its price was little high
than I Phone. It has gained world attention. It has got about 3 lakhs of pre-bookings.
As, In India car is seen as a matter of proud, integrity and of financial
status. So, no one will want a car that is said as “Lakhtakiya car” or “The world’s
cheapest car”.
Here, the price was strength
but its positioning became its weakness.
Also, Tata Nano has failed
in creating emotional value.
TATA NANO AS UNRELIABLE AND
FRAGILE CAR
Due to it’s cheapest tag, it
was thought unreliable and fragile. It looked like replica of auto-rickshaw and
was said “Covered auto-rickshaw”. At the time, some incidents and accidents
were also happened with Tata Nano. So, gradually trust of people started
decreasing. People thought bike or used car would be better than having a “Lakhtakiya
car” that is unsafe.
Here, we can see the low
marketing strategy of positive rebuttal by Tata industries.
Also, Tata Nano has failed
in creating performance value.
FAILURE OF TATA NANO IN
RURAL AREAS
Tata wanted to target Nano
in rural area to expand their network. But, here also they failed as the roads
of villages are not so good and Tata Nano was found incompatible for people of
rural areas. Also, In rural areas, peoples have big families So, they never
want any small car for them in which they have to manage somehow.
FAILURE OF TATA NANO ON ITS
PRICE TAG
As, Tata has promised of
giving Tata Nano within price range of 1 lakh but due to the inflation in the
market at that time, Tata also failed in providing the car within 1 lakh, it cost
about 1.2- 1.5 lakhs.
Here, Tata Nano failed in
creating financial value.
FAILURE OF TATA ON ITS
DELIVERY TIME
Tata took a lot time to
deliver their car, within that time many incidents and accidents happened with
Tata Nano and mood of the people changed, and pre-booking were cancelled.
Here, Tata Nano failed in creating
relational value.
IMPACT OF TATA NANO ON OLD
CAR AND BIKE INDUSTRY
Due to Tata Nano, the old
car and bike industry started settling down, as people started buying new Tata
Nano car instead of buying old cars or bikes.
Tata Nano has captured a big
market share of Automobile industry at the time of its launch.
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