Today we will learn from industry experts in automobiles(Tata Motors) that how their strategy went wrong and we learn from their mistakes. Case Study TATA Nano. Why Did Tata Nano Fail? Learn From Mistakes.
Tata product was not bad as it was publicly shown to the potential customer. The product was awesome and still, people like me want to buy that car because that car was designed for everyone then why did tata nano fail?
Actually it was just not a product, it was feelings of having a car of mine of every Indian. So today we will talk about what exactly went wrong with TATA Nano Products.
Even Barack Obama (Former President of America) praise the Tata Motors for their awesome and ambitious Nano projects after that Nano got extraordinary publicity from all around the world.
Nano did it branding itself without investing much money in promotion & advertisements. So let’s see why Tata did Nano Fail? Let’s explorer..
Cheapest Car Tag
By default marketing given Tata Nano the cheapest car tag because of pricing. They didn’t spend lots of money on marketing strategy and somewhere they were happy with that. Media gave the ultimate hype to Tata Nano before launched that’s why we called by default marketing.
Sometimes you will have to clarify your message to the public. Tata’s goal was to deliver a car to every people whoever dream about it but default marketing given the cheapest car tag line.
Cheapest car emotionally hurts the people of India because the car is not a necessity in India because it is treated as a symbol and status of people.
Cheapest car somewhere able to position the car image that indicated unreliability and trustworthiness among the potential customer.
In Indian market design matters a lot because of the mindset. Nano looked like an upgraded version of Auto. Due to poor design, people avoided the car and it didn’t go great for the car manufacturer.
Tata never worked on public feedback. They never focus on the design of the car while they knew what people are saying about it. They must focus on the design of the car and change a little bit to make attractive people.
Tata nano failed to create aspiration value and later become the reason of failure. Having a Car treated as a success of any person in India. People of India judge you on the basis of the car you drive.
Nano set the mindset of cheapest car, unsafe car, poor people car, etc and potential customer loves to avoid the car and bought the stylish bike, old cars, old alto instead.
We are expecting the product at 1 lakh rupees as promoted by TATA but it never came nearby 1 lakh at all. It was the first disappointment potential customer faced.
The price it was launched was competitive and there are so many good looking cars was available in the market and potential customers moved on.
There are reasons for that but India is a price-sensitive market and every business owner should understand that.
The product wasn’t delivered on time because of protests against the Tata Nano project in Singur West Bengal.
Know more about Tata Nano Project West Bengal Controversy
Due to protect against Tata nano in West Bengal. Tata project shift to Gujrat that’s the only reason become delivery extended and pricing increased.
Tata car caught fire in a public place and that wasn’t due to bad structure and mechanism of cars because that point of time lakhs of cars were running on the road. As per tata spoke person, the spark was happened due to some external modification of cars.
Later car tested by some well know organizer of a foreign company and stated that car was Burt due to some internal modifications
The marketing team failed to gain the trust again because they are not able to positive rebuttal. Wrong Targetting
Tata was targeting the people of tier-2 and tier-3 cities that become another reason for failure. Big family, Bad roads not satisfying the needs of people at all.
Media gave the nano an ultimate hype before launching but the same media destroyed the car image in front of potential visitors.
Tata saved on advertising cost because the Tata Nano project got much attention from all media houses before it’s launched and make this car cheapest car in the market. Cheapest car tag backfire and people reacted negatively.
Learn From Tata Nano Products Failure
- Avoid bad positioning of any product and services.
- Avoid bad marketing team.
- Focus to create emotional value for your brand among the people.
- Keep your promise like whatever you said earlier. Like Pricing.
- Tackle the negative impact very politely & create a positive vibe.
- Change the strategy, product, and services according to earlier feedback.
- Delivery of products and services should be prompt.
- Focus on the target audience.
Failure of tata nano was one of the devastating thing happen in automobile sectors. So do you have any suggestion about it please let us know by commeting below.