Since launching in 2009, Tata Motors has tried several strategies to capture the void in the market between two-wheelers and Maruti’s starting range car. Given the sales figures, it seems that these efforts are not bearing much fruit.
The latest effort of enticing the youth through “awesomeness unveiled” campaign follows earlier attempts to portray itself as a safe substitute for two-wheelers. Many new colours and improvisations have been brought in. The price has risen due to these changes, making the difference between Nano Base Model and Alto Base Model only one lakh. With loans being readily available these days and with a small EMI of Rs 2,000 for five years, a person can buy Alto. Moreover, the youth is ambitious today and want speed and power. With 624 cc engine, Nano is a no-no.
Wrong focus Tata Motors needs to understand that the initial interest in Nano was due to the curiosity in the public’s mind whether such an inexpensive car can sustain Indian conditions. Somehow Tata Motors missed campaigning around this. Being a small car, manoeuvrability and mileage are the biggest plus points of this car. Who better than Nano can beat the pothole menace? In cities, where finding a parking space is a task, Nano takes a much smaller space. All this needs to be highlighted so that Nano is seen as a smart car for Indian cities. The “youth focus” needs to be dropped because the car has still not shed its image of a cheap car and today’s youth, believing in gaudy display, will opt for a cheaper bike with cool looks. As a smart car, Nano can be pitched to office-goers for whom driving a sedan or an SUV through rush hour traffic is a nightmare. Comfort features, such as, more height than Alto, high ground clearance, among a few, should be highlighted. Tata Motors should create hype about the indigenous design or ‘Swadesi’ to touch upon this educated class who is more aware of the Indian economy or idolises Ratan Tata. On weekends, what can be a better car than Nano to drive through the crammed bazaars with wife for saree-shopping? All these will not be appreciated by the youth, but will be appreciated by a 30-40 years old man.
Another related strategy can be to market Nano as something convenient for women. To associate with women, they should advertise it at community festivals like Durga Puja, Baisakhi and other family oriented functions. To connect to these independent progressive-looking women, Tata Motors should definitely provide some customisations such as child-lock, air-bags, etc. Similarly, one will be more relaxed if his or her old parents drive a car that cannot achieve too high speeds. Basically, Tata Motors should try to make those members of the family their customers, who so far depended on family head to drive them.
Tata Motors was not able to catapult Nano sales because the innovators and early adopters in the market purchased it but the early majority segment of the market, which gives the volume to any product, could not be convinced. Undoing the wrong will take some time and Tata Motors needs to be patient with the marketing strategy. They need to reposition Nano as a smart car for the office-going public and independent women. The youth may also be attracted to this car in future, but not immediately.
(Abhineesh Das and Rajadeep Singh are pursuing PGP in management from Indian School of Business, Hyderabad.)