Case Study on Tata Nano: Tata Nano is the name of the automobile produced by the Indian company Tata Motors. Long way ahead Nano has to go a long way in realizing its dream of 20,000 plus units per month that would get its plant in the western state of Gujarat running full throttle which is presently moving at the level of around 10000 units per month. According to Kim and Mauborgne, in a Blue Ocean Strategy, one creates uncontested markets space where the competition is irrelevant, invents and captures new demand, and offers customers a leap in value while also streamlining the cost. Ratan Tata about building a car that was big enough for a small family and affordable by people who ride bikes. Tata Nano was introduced in Delhi in 2008 and it astonished customers with its price.
Front passenger seat same as the driver seat, and the headrests are integrated. Another plant was built at Sanand in Gujrat where the production finally started. It is the passenger segment on which Tata can capitalize. No airbags on any model 7. However, in the year 2008, Ratan Tata under the banner of Tata Motors limited announced the launch of its new car, which would be a revolutionary product in the automobile sector.
However, it was a totally different story that unfolded when the car actually rolled on the roads. Only one wing mirror on base models. The Asian bottom of pyramid population consists of 2. Tata Motors thought they should go after the young college kids or anyone who currently owns a motorbike. Analysts opined that Tata Nano had created a new segment in the passenger car market. Tatas plea was that problem was not of the complacency.
They believed that if they created a car that could match the qualities that make the motorbikes so attractive: the fuel efficiency, low purchase and maintenance costs, and small size. It is a high involvement product and is sensitive to high differences between various brands. How would you segment the Indian automobile industry? The shifting of the whole factory across India caused a huge delay in the release date of the car. Increase international market presence especially Europe too boost Tata Nano's business 5. Some people like the company, but some others do not.
The 2012 version of Nano was unveiled by the Tata in the end of 2011 and now as the fiscal year ended in March, the new efforts to promote the 2012 Nano in the Indian market have started paying off. One windscreen wiper instead of the usual pair 2. And then starting from a clean sheet of paper , the car was designed and developed keeping manufacturing costs, material costs and production costs at lowest possible level along with maintaining its character, style, adorable looks and finished quality. The authors propose monetary savings of the coupons, regularity of the campaigns, and coupon fit with customer preferences as moderators. The company has given the car a new makeover by additional features like new interiors, a powerful gasoline engine, better fuel efficiency and attractive colors like champagne gold and papaya orange.
National Conference on Emerging Challenges for Sustainable Business 2012 1089 A Dream Shattered or Still A Big Potential: A Case Study of Tata Nano Problems in the Product Development Phase Ride for Tatas in the production of Nano had been anything but smooth. The dream of People's Car has come true. During… Tata Nano Case Analysis Ratan Tata, chairman of Tata Motors Ltd. Does the Nano represent an evolution or a revolution in automobile marketing? In fact the top end Model of Tata Nano is presently 2014 quoted at an on road price of around Rs. This event resulted in the temporary delay in the production along with causing a huge loss of infrastructure costs of a plant almost ready for car production.
Hailed as a showpiece of innovation spawned from and targeted at the emerging upper middle class ; Nano is working hard to undo its mistakes in the past. Tata Nano is available at a very affordable price 2. This car was targeted to be bought instead of motor cycles by the middle class people. Will Tata be able to ensure quality and consistency? Findings — The case shows that companies can create products with functionality and cost advantage for the poor without compromising on safety and comfort. When there is a problem connected with case study writing a student can find the most appropriate solutions in the Internet reading a free example case study on Tata Nano written by the professional writer. Buying a car is still a dream for many people in India. Cost-cutting: an effective marketing strategy 3 3.
Issues: » To understand the challenges in developing an innovative, cost-effective product. No external fuel filler cap. While developing the car, Tata Motors and its suppliers constantly made efforts to reduce the costs while ensuring quality of each and every component including engine, steering, wheels, tires, windshield washing system, gear shifter etc. To further identify and assess competitive advantages that Tata Motors would enjoy in automobile industry, it is first required to overview the competitive environment it is surrounded by. Consistent with theoretical expectations, customized coupon campaigns are more effective if they provide more discounts, are unexpected, and are positioned as specially selected for and customized to consumer preferences. Productinnovations and frugal engineering by competitors 5.
Low priced necessity products demand is always there where high end products will be affected by inflation and many more. » To understand the efforts put in by Tata Motors to cut down the costs at every stage of development and production of Nano. Ultimately the most talked Rs. We hope that our academic case studies and case study writing tips will help you in your business school, college and university education. Even when Alto was launched the price went upto only Rs. A firm can reach a superior percentage of profit by supply an identical goods or service at a lower cost Grant, 2010.