Why did Tata Nano fail? | Tata Nano Failure Case Study
TATA NANO, which was conceived as Ratan’s Tata dream of building a car for everyone. An Inexpensive Hatchback for Indians who depend on their scooters and motorbikes every day deserves at least some soothing comfort car.
Ratan Tata realized that in order to make the car accessible to almost every Middle-Income-group Person. He would have to innovate a car that was priced as low as possible.
So, In order to meet the ‘LOW-COST’ Requirement, Manufacturers employed a number of techniques to maintain low cost, like ~
1. Setting one windscreen wiper instead of two.
2. No AirBags.
3. Lightweight spare tyres.
4. Making the fuel inlet accessible through the front hood only.
THE HATCHBACK SOUNDED GOOD ON PAPER, BUT IN REALITY, FACED MANY ISSUES BEFORE PRODUCTION EVEN STARTED.
~ They positioned the car as the “Cheapest” in the world.
~ Emotionally Disconnected Ads: Undesirable for the targeted audience: Indians have always associated a car with luxury.
~ For Indians, Cars mean Status symbol. And suddenly, the most attractive feature of Nano, i.e. Its Price, becomes the biggest problem.
~ Poor Build Quality: In the case of safety, Tata Nano miserably failed by scoring ‘zero stars’ on NCAP ( New car assessment program ) TEST.
The ‘Tata Nano failure’ case study is a Key learning point on what to avoid in the marketing and positioning of Automobile.
Now, The question is Why Sir Ratan Tata is not on the list of richest people worldwide?
