TATA nanoKhushiyon ki Chabi

Ankilkumar SanghviDM16106Anurag AnandDM16110Divya RDM16115Raghav RDM16131Shruti BalabhadraDM16144Sanjana NDM16158

Introduction:Ratan Tata had a vision, for Indian motor cycle family, to bring a car which is affordable and best fit to Indian nuclear family. And that's how Tata nano born and came into picture. But from the first day, controversies are the part of Tata Nano. They started their plan in Singur, West Bengal. But they got a problem with Land acquisition in Singur. And then they shifted it to Sanand, Gujarat.Your vehicle got your likely of becoming a workable replacement for your substantial two-wheeler human population with The Indian subcontinent, they estimated with more than forty million products with 08.Huge PotentialSimply speaking, your likely ended up being mind-boggling. Even if your Nano captured 1% on the two-wheeler, this might include caused it to be the greatest advertising auto in the Indian marketplace. With INR 100k, the purchase price appeared affordable adequate and also the best-selling, well known bicycles have been priced close to INR 50k.Understandably, your press, analysts as well as forecasters proceeded to go ballistic. Over the subsequent quite a few several weeks, your press kept adulating your Nano towards extent the square inches involving press insurance coverage per se could well be worth a number of mil cash worth involving comparable marketing purchase.Reduce for you to 2013, plus the Nano were able to advertise all of 18447 products. This revenue level is lower compared to what exactly your Nanos nearest thing selling price rival Maruti-Suzukis Alto800 markets inside a thirty day period.They started marketing the product as the world's most affordable car and Mr. Tata aspired the price is 1,00,000 Rs which is 2000$ at that time but the problem is that very few consumer were able to buy the product at that price

ELABORATIVE LIKELIHOOD MODEL: This theory can be used to specify when the people are more likely to be influenced by the content of persuasive communication instead of superficial communication. It helps us to know which method should be used to persuade people and listen to the advertisement. CENTRAL ROUTE TO PERSUATION:Tata Nano can change the perception of the people by using the central route to deliver the message and the benefits of the product. Since it is a high involvement product people will think cognitively and make the purchase decision. Thus educating the people about the product and its features is important as it makes the people to process the information which will help the brand stay in their long term memory. This helps the product to be considered in the evaluation set while making a purchase decision (High Brand Resilience). Tata Nano has realized this and has now come out with Ads recently which talks about the features such as easy access hatch, automated manual transmission, electrical power steering and advanced structural stability for safety. PERIPHERAL ROUTE TO PERSUATION:The main mistake that Tata Nano did is taking the emotional route even before educating the people about the product and its features. They came up with ads such as Kushiyon Ki Chaabi, it was a good Ad but it added on to the feeling that it was a poor mans car as it was taken in rural location and had people in auto and bike as target segment. For a high involvement product people do not easily get swayed by emotions along. They could have taken the peripheral route after the people have got to know about the product well enough. FISHBIEN MODEL: This model can be used to change the perception and the attitude that the people hold towards the product. Classical conditioning can be used, they can come up with jingles that comes-up to the top of the mind of the customer at the time of the purchase and helps easy recall. YouTube is an integral part of the promotional strategy these days, so putting up ads on YouTube is very beneficial. Television ads are being neglected these days, as viewers turn the channel at the time the time the ad is being aired. Using a celebrity as the brand ambassador can increase the brand recall and the image of the celebrity rubs off on the product. For example, Hyundai Santro Ad which feature Shahrukh Khan and Preity Zinta) Since it is a high involvement and a technology product, they can use Twitter Handle and Facebook Page to promote their product. Social Media is the best way to appeal to the episodic memory of the customer. Search Engine Optimization (SEO) can be used as the customer gauge the quality of the product like Cars based on the information of the product and usage is not required. People search and then evaluate the product. A lot of videos, articles and infographics can be used to gain visibility for the product when SEO is used along with it.

Kellers Model

The brand awareness of the Nano is great. It received huge media attention which brought it to the lime light. From Arnab goswami to Barrack Obama everyone were speaking about the Nano. The Brand recall and recognition were high. Where as the Brand Image has taken a huge beating, the price was pretty low and had a huge impact on the perceived quality of the product. The image of the user was perceived of that of a person who could not afford a car. The people always want to mask their poverty- Carrolyn Look, 2013. They want to showcase they could afford something better by buying a second hand car rather than a Nano. Though Nano had huge functional benefits the image and symbolic benefits over shadowed them.

Aakers Model

According to Aaker, Brand Equity is a function of brand awareness, perceived quality, brand association and brand loyalty. The brand awareness as mentioned above was huge. The perceived quality of the product was very low, the product was compared to autos mainly because of the noise it made and the incident where some Nanos caught fire was another great reason for people to perceive that the quality of Nano was poor. The immediate thought which occurred in peoples mind was the cheap image/ cheap brand. Anchoring Anchoring is a cognitive bias that describes the tendency of relying heavily on the basis of the first piece of information received. The price tag of $1500 was set as the anchor. Moving away from the price point was very difficult. The scenario was similar to what Amos Tversky and Daniel Kahneman displayed in the series of experiments in anchoring. The price of $1500 was anchored in the minds of the end consumers and moving away from this price point was very difficult and thus they had to work around this price point and had to come up with the end product within this price range. Moving away from this price point was not an option because it gave the consumers a negative feeling and felt they will be overcharged. According to a study conducted by Strack and Mussweiler (1999) the price points or initial cues has an impact on the buying decision. This worked against the Nano because they couldnt increase the price as the refernce point was set.

Associative Network Memory ModelIt is a memory model which consists of nodes and links where the nodes represent the stored information while the links represent the strength of this association. In the case of Tata Nano, from the very beginning the vehicle was associated with being cheap due to the hype created by the public and Indian population. With the perception of being cheap it was automatically considered that something this cheap would not be of good quality, with a number of people comparing it with an auto rickshaw. Further due to the price restrictions in the manufacturing and processing as well, Nano did not have many features like AC, power steering and power windows (in the basic 1 lakh version). The price further compromised on various things like comfort and safety (Tata Nano on fire).Presently, Nano is trying to create an image of youth and trend within the minds of the consumers. It aims to be associate itself as a smart city car which provides space and comfort. The advertisements represent it as a colourful car which does add an image value to the purchaser.

As per a recent survey, almost 70% of the target group considers it as a Peoples car, while almost 54% of the population disagreeing it to be a rural car and in turn agreeing it to be a city car. Further, 54% people consider it as a trendy and 40% calling it a youth oriented car. However, there is still substantial ambiguity regarding its safety where 44% say dont know when talking about its safety. Also, Tata Nano is considered as lower middle class car with 54%.

Maslows Theory of Hierarchy:

Maslows theory of hierarchy talks about people always striving to achieve a certain need. When one need is satisfied, he seeks to fulfil his next need. It generally follows the above hierarchical model. According to this model, buying a car would fall under satisfying self-esteem needs. In India, unlike other countries, a car stands for status symbol. Owning a car instils a sense of achievement in the mind of the consumer. It cannot be classified as a purely hedonic product or a utilitarian product. It can considered a mix of both. Hence, a car satisfies the self esteem needs of the consumer.According to Keller, the marketer should identify which needs the product satisfies and should communicate that value to the customer. This will have a greater impact on the consumer and will give a much more positive image for the product. Tata Nano failed to do this. They marketed the car as the cheapest car in the world. Instead of acting as a USP, this strategy backfired. People started associating the product with cheapness. So, people never really felt proud of owning a Nano. Owning a TATA Nano never improved their status symbol. Consumers always try to associate themselves with their aspirational group a group they look up to. Consumers try to aspire to be one among their aspirational group. They try to copy the things that their aspirational groups do. People view the class that they belong to as a dissociative group. A group that they dont want to be associated with. They want to be associated with a higher economic class. The advertisements of Tata Nano directly were disclosing the association with their actual income class.Hence, people were hesitant to go for the product as they did not want to be perceived as one among lower middle income group. This is where Social Proofing phenomenon comes into play. With the message that Nano is the cheapest car in the market, clearly communicated to the public, anybody who bought a Nano was seen as a part of the lower idle income group. It essentially did not give the image of a good buy. Hence, due to the fear of being an outcast in the society, people refrained from buying a Nano even if the product attributes were very good.

Present Case Scenario: Shifting target segment from families to youth to build youthful and aspirational value around the brand Earlier, the car was positioned as a family car the first car for a middle or a lower middle income group consumer. It was projected as the only affordable car for people belonging to that segment. Now they are targeting the youth population instead. They are trying to position the car as a fun car for the young population. Trying to position it as a fashion accessory for the college going crowd. This was particularly evident when Nano was made available in a variety of colours. Nano as a fashion accessory taking lessons from Masaba Gupta o position it as a fashion accessory. Marketing as a smart city car Now Nano is being marketed as a smart city car. With the crowded roads and the traffic jams, Nano provides the best solution a compact car for easy manoeuvring in the congested city road. With its fuel efficiency and the design it is trying to communicate its efficiency and smartness. Launching new variants automated transmission Changing marketing communications trying to connect the brand to young achievers endorsing young achievers Change in Marketing Communications: Tata has also re invented its Integrated marketing Communication. Now Tata is endorsing people like electronic dance music DJ AkshaySarin, celebrity dancer Lauren Gottleib, and professional golfer NehaTripathi. They are endorsing people who have an image of young achievers. This they believe will help them to establish an emotional connect with the consumers. Focusing and communicating product attributes compact design, technology, fuel efficiency, looks and aesthetics The present TV Commercials and advertisements talk about the style, the compact design of the car, the colours available in the car, its fuel efficiency. The focus on the product attributes is more than the focus on the emotional aspect of the car. Such as, buying the first car in the family, etc. Change in dealership and distribution: changing aesthetics of the dealerships to fit the image of the brand - The new dealer identity will make the consumer experience more exciting. The dealerships will have better displays, video walls, trained workforce to reinforce the smart city car image and all content will be centrally controlled. There are 95 standalone Nano dealerships and the company has no plans to increase the number this year Tata also has redefined its distribution system for this Car and has taken various innovative initiatives like joining hands with giant retailer Big Bazaar, focussing on two tier cities launching of Tata Nano Finance Scheme for providing finance to its customers for a lower interest rate and extension of warranties on the cars. Tata Nano finance schemes - providing finance for its customers at a lower rate of interest. TATA NANO - A BLUE OCEAN STRATEGY(BOS)?Tata Nano reconstructed market boundaries across alternative industries and created a commercially viable blue ocean opportunity by following the right strategic sequence. To match value and profit propositions with an equally strong people proposition in ensuring the successful execution of a blue ocean strategy.Tata Nano was considered taking into account noncustomer experiences from another industry the bike market and how a strategic price was set against different alternative to catch the mass of target purchasers. Tata Nano group supplemented its convincing quality recommendation with a suitable benefit suggestion by seeking after target pricing to convey remarkable purchaser utility at the strategic price set. Tata Nano's kin people proposition to distinguish the real reasons for the misfortune it encountered in executing the strategic move, showing the significance of coordinating solid esteem and benefit suggestions with a similarly convincing people proposition to guarantee the effective execution of a blue system strategy

A totally new car segment unique in itself on affordable price range and prestige at Rs. 1 lakh. Not very high speed, but surely a better option to go with Main focus on people with two wheelers, college going students, retired old peoples. Low maintenance and relatively fuel efficient vehicle.

CONSUMER BASED BRAND EQUITY MODEL FOR NANO:

The idea driving the Nanos Brand Equity Model is basic, keeping in mind the end goal to manufacture a very strong brand equity, it must shape how the clients contemplate. It needs to manufacture the right kind of encounters around the brand, with a goal that the client have particular positive considerations,sentiments,convictions, suppositions and discernments about it.At the point when the brand equity is very high and solid, the clients will surely purchase more from you, theyll prescribe the product and the brand to the other individuals, they are more faithful, and you are less inclined to lose them to any contenders

Resonance The brand Nanocaters to the social needs of the customers. Judgement Within Budget or affordable Feeling Feeling of prestige or proud moment Performance Competitive mileage and high fuel efficient Perception Indianize the car Salience Automobile, Conveyance

From the perspective of theConsumer based brand equity model (CBBE), the consumers has the following perceptions: Convenience: True Comfort: Doubtful as Boot space and all were less Pride: Not so strong feeling of pride Status Symbol: Very Doubtful Display of smartness: Not at all Economic/ Easy on pocket: True Mileage/Fuel efficiency: True Power: Doubtful Car personality: Very weak

Suggestions: Second Car Option Come up with more attractive versions Quality(Safety) improved campaign Foreign Market Celebrity ambassadors For cheaper brand symbol they have to option Rub off bit by bit and redraw new line Dump the entire canvas and start fresh Financing better facilities like Tata Finance Fear based advertisement Define a clear marketing strategy Convey the features of the car to the target population

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