Introduction in Indian Rupees at that time of the


worldwide auto industry is in between of dramatic growth and change. Tata
Motors is a sector of the USD 100 billion Tata group which was founded by
Jamsetji Tata in 1868 in India. Tata Motors main aim is to focus on
sustainability and giving its customers the best. Tata manufactures cars that
give the best comfort, connectivity and performance. Tata’s design, research
and development (R) centres are located in India, the UK, Italy and
Korea. Tata which is globally spread is also famous for its mission statement
which is “to be passionate in anticipating and providing the best vehicles and
experiences that excite our customers globally’. Tata companies are part of
many community development and environment projects. Tata group focuses on
social activities which are health, primary education, skill training,
entrepreneurship, livelihoods, women empowerment and strengthening services. In
2008 Ford was facing a high rate of bankruptcy and that is when Ratan Tata
offered them to buy their car brand Jaguar-Land Rover. The deal was made for
2.3 billion US $ which was 9300 crores in Indian Rupees at that time of the
year. Basically, Tata offered this deal because once when Tata was in need of
help they were insulted instead of helped and this lead for a revenge from
Tata’s side. Tata Motors is India’s largest automobile company. Tata which is a
very well-known brand worldwide launched a new car called Tata Nano which was
known as ‘people’s car’. In 2008 Ratan Tata the chairman of Tata Motors
announced the launch of its new car Tata Nano which later on became famous as ‘people’s
car’. He called it a 1 Lakh Rupee Car, since it was the best anyone could get
at this price. Tata Nano was a customer-desired car it was made with the
understandings of what the customers needs are. There was a story behind the
launch of Tata Nano which made Ratan Tata launch the car. One day Ratan Tata
saw a family of four on a two-wheeler, the family also had little kids and they
were struggling to fit themselves properly. Moreover, after this incident Ratan
Tata thought of providing everyone with a secured and affordable
transportation. Firstly, Nano’s price was kept very low with a spacious
interior, lower weight of the car, and installing the engine in the front also
having the petrol tank in the front. Secondly, Nano had more of fiber and
plastic instead of steel to keep the weight of the car low which also made it a
low-cost car. Lastly, Nano has no radio, power windows, air conditioner,
anti-lock brakes, air bags, remote lock or power steering.

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Tata Nano is built and managed over time


brand pyramid is a diagram that almost every organization creates which gives a
broader view of an organization. The brand pyramid mostly has 5 bars, and is
read from bottom to top. Tata Nano also has its brand pyramid with 5 bars, they
have classified them as 1) Market, 2) Target Market, 3) Segment, 4) Target
market, 5) Customers. The brand pyramid of Nano talks about the people who are
willing to travel which comes in the market part of the pyramid, then the
target market is the people who want to travel on a 4-wheeler, the third bar
which is the segment tells the areas which are focused geographic, demographic,
and also the usage for example family and personal use. The second last bar is
target segment which tells about the areas in a briefer way, life cities, rural
areas and also the income groups which are lower and middle class which can be
families or students. The last bar shows the customers which can be lower and middle-class
families who want a 4-wheeler, or youth who want to try a trendy vehicle with
good safety, features and low cost. Branding is very important not only for the
brand itself, but also for customers and intermediaries. If a brand offers
loyalty to its customers, for example if Tata Nano is offering loyalty then it
is more likely for its customers to be its regular customer and to consider
their duty to recommend it to others. Moreover, branding also advantages the
intermediaries because if a brand is already famous and well-known it will be
easy for them to recommend those brands. Tata being a very famous manufacturer
would easily get recommended by intermediaries because of the brand image it
has. When talking about brand equity the word “Brand Equity” answers for itself
brand equity describes the brand’s value, it is the value which is determined
by a consumer’s perception regarding their experiences with the brand. Tata
Nano came up with a tag line called “Khushiyon ki chabi” (Key of happiness)
this made every person wanting a car at a low price happy, because whoever once
saw I dream of buying a car can now fulfill it because of Tata. Tata Nano gave
this message to the entire nation that cars were not just for the rich, anyone
who had a low budget could now buy a car. Tata Nano used advertisements and
media to tell everyone about the new “1 lakh car to fulfill all your dreams”.

After all the steps Tata took to promote Nano and to make people happy it
automatically increased the brand equity since the customers would be satisfied
by the brand because it was fulfilling all their needs. Tata Nano came up with
a marketing plan in which they first segmented and then targeted the population
of India. Firstly, came the middle class in which lower and upper lower classes
were included. Secondly people who use two-wheelers and lastly family who had
more members but were travelling on a two-wheeler. Tata launched Nano in the
segment of cost leader in the broad because that is the lowest cost of
operating and it would attract more people of the population. In 2013 Tata
Motors re-launched Tata Nano with new features and advertising campaigns. The
re-launch of Nano had four main aims first of them was to focus on the youth of
the country, second the rational benefits, third the tie ups and lastly the
safety. Nano targeted the youth in such a way that now the car had fancy
settings and different color combinations like farm side or adventure sports.

The rational benefits were that there were new advertisements and campaigns
which now told the customers “Why not buy a Nano when it gives everything at a
half price” and it also talked about how fuel efficiency could benefit. While
talking about the tie ups Tata Nano now sponsored tv programs on MTV which were
linked to adventure sports for example the contestants of series Roadies were
asked to travel across India in Tata Nano, this also showed how tough the car
was. Last but not the least the most important thing the safety, the
advertisements were made to make the parents realize how travelling on a bike
is not safe and how they can give their kids a Tata Nano at the same price
which would be safer. Nano faced many issued after its launch, in the start the
sales were very high but with time the sales started declining. The problems
noted with the car were that Nano was not a car that could take to hilly
terrains, the engine of the car used to make a lot of noise and at times many
engines were catching fire because of excess heating. Moreover, the interior
was not so good the car had very little leg space and the body of Nano could
get easily spoilt because of being light weighted. Nano also faced price
related issues because Nano was promised to be sold as 1 lakh rupee but when
people were going to the market the price was Rs. 25 thousand more. The issues
with promotion were that since there was hype in the market for Tata Nano
instead of becoming the smart car of the market it became “The Cheapest Car”. Tata
Nano should have planned first how to deal with its crisis. The issues with the
car should have been looked into before bringing the car into the market also
the interior was not such of an issue because that depends on the passengers.

Furthermore, Tata Nano should inform the people first about the ‘exact’ price
before launching it in the market. The promotion problems could be handled very
easily because every person has their own point of view. Tata Nano should have
several surveys online about Nano’s launch since it became so popular and
almost everyone has access to the internet. The surveys could actually help
Tata Nano and its customers interact with each other and this would also
increase the brand equity of Tata Motors.

brands are organized in portfolios and how hierarchies are built and managed
over time


brand portfolio of a brand is not just about a specific product it is about the
brand over all.

researching about the brand portfolio of Tata Nano, first step is to look at
the parent brand which is the Tata Motors under which all the cars are
manufactured. Since, Tata Nano is a light weight car only look at some of the
cars of Tata Motors which are somewhere like Tata Nano and not heavy vehicles.



launch of Tata Nano was to address the part of the population which was
previously unaddressed and Nano itself created its own name in the market. At
the time of Nano, the competing brand was Maruti 800 which was for 2.5 Lac and
higher than Tata Nano. The launch of Nano put Maruti in a high stage of
competition which eventually made them discontinue the manufacturing of Maruti.



brands are leveraged/ extended over time domestically and internationally


Nano which was the cheapest car faced many downfalls but Nano is coming up with
a new project they are launching an electric version of Tata Nano. The electric
car will be launched under the “Neo” brand. The new Nano would be sold in
Europe. There were two main reasons why Nano thought of launching the electric
version of Nano, one of the reason was that Nano itself was not bringing any
profit it was said to be a loss-making car, second reason is that an electric
car would lower the rate of pollution and also day by day there is a high rate
of increase in carbon emissions. The launch of the new Nano electric car will
help Nano gain its respect in the market again. Before the launch this time
Nano should carry out a proper market research and then launch the new Neo
accordingly. Tata Motors plan to launch Nano in the United States was a part of
Tata Motor’s to become a global carmaker. The launch of Nano in the US would be
a new and improved Nano. Tata Nano which will be supplied to the US will be
wider and also will be equipped with modern and better safety equipment’s like
advanced breaking system.


for measuring brand value over time



year from Nano’s launch to 2010, 20 percent of the buyers of Nano were in the
age group of 25 to 34. Nano’s advertisements today compared to the first Nano
which was Nano ‘aa gayi campaign’ is a change in colors and music which is
liked by the young generation. Tata Motor’s new chairman Cyrus Mistry said that
Nano will be repositioned again as a “smart city car”, also the commercial of
the new Nano had five million views on YouTube in just 30 days which was a
record according to The Economic Times. The latest Nano is called the Nano
Twist, with a new color called ‘damsel purple’ and also a music system with
Bluetooth connectivity and keyless entry. Moreover, the other idea was to
launch the Nano Twist in some other country like Indonesia because over there
Nano will be new and then it would come back to India with a new image. A brand
audit is an examination of a brand’s current position in the market compared to
its competitors and it also shows the new growth opportunities for the brand.

 Brand audit


Nano’s old marketing team was taken over by a new team which came up with new
strategies like an extended warranty and a Rs.99 a month for maintenance
contracts, with new advertising campaigns. Tata has made it easy for the walk
in customers to get its car financed by SBI and other banks but if someone is
not eligible Tata Finance steps in and provides with the finances with a fixed
interest rate of 13.5%, which has been never done by any firm in the automotive
industry’s history.






automobile industry is the most famous industry in the entire world but it has
an immense place in India. Tata Motor’s launch of Tata Nano as a dream car of
common man of India did not meet the given expectation because instead of
getting known as an affordable car for everyone it got known as world cheapest
car. The mistake which Tata Motor’s made was that they did not know how to
position Nano properly, the positioning of Nano a “cheap car” ruined the brand
image of Nano and also the performance of the car became terribly
underwhelming. When launching a product in the market it is very important to
first understand the mindset of the consumers. Nano was said to be a cheap car
and also the poor could now easily buy it, after having this in their mind none
of the poor people would even consider buying Nano because they would not want
to be known as poor.


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