Intro

Only 8.5 percent people in India own car, Tata Nano hopefully can expand in the market up to 65%

Problem

 Regarding popularity, final demand was low (production problem, core problem 2)
1. orang india kepo bgt, tp dia nunggu product launch dulu biar tau qualitynya eh pas udh
keluar ternyata qualitynya jelek
2. operation problem: pindah pabrik, capacity cuma 25%
3. dari segi produksi dia gabisa opensales krn:
a. dia pindah pabrik ke tempat yg lebih jelek jadi dia ga kepikiran buat buka dealer
b. demandnya tinggi sedangkan capcitynya turun dari 300,000 units ke 50,000 units jd
customers hrs indent
 Tata motor only operating only 25% of capacity
 Production was limited only 3 days
 Pile up inventory production must be stop until inventory out from plant
 Plant was move from Singur to Sanand (consequently could not launch through open sales)
 People want to wait Nano launch and test reliability of product before making decision
 Target market was blur (core problem)
(tadinya target angan2 mau ada 4 segment tp kenyataannya yg beli itu yg middle income utk
dijadiin mobil ketiga atau keempat, jd orang2 kaya ini ngereview jelek, jd aja kesebar jelek)
 In middle income people in India car was not consider a utilitarian product, but desireable one
(people basics on wants rather than needs)
 Reliability/quality issues
 Negative word of mouth publicity
 Cultural issues
 Company did nothing about make loans availability to target customers (2009)
 Did not established channels to actual target, not invest to build dealer in rural area
 Bad company or make speculations for public regarding launch of product
 Core problem 3 (indian market lebih suka barang yg offer more value)
 Problem Setelah launch:
a. Quality issues
b. Salesnya low
c. Negative word of mouth
d. Jadi excess inventory (perusahaan ga tau cara ngeluarin productnya krn org2 udh tau
qualitynya jelek)

Background

 In 2003, at India motorcycle are favorite rather than car because car is expensive
 Middle class expectation was uprising in 2025 increase 100% creating lucrative market
 Motorcycle are very dangerous for commuting
 Tata motors only sell car around 2500$
 Still not decide what plan should apply, safety reason or only sell product that cross car and
scooter
 Booking period was 1.5 month with complete payment
Competition

 High competition from used car market. Use car market 5 time larger than new car market
(orang udh tau product dan qualitynya mobil di used car market dibanding mobil baru –
behavior orang india)
 Competition from motorcycle
(orang kan targetingnya rural people, tinggalnya di gang2 jd lebih milih tetep pake
motor)(masuk ke cultural issues)
 Simmiliar product have good quality product
(middle to low kalo dia konsumsi produk yg diliat value jd dia berharap dengan harga 2,500
valuenya tinggi, tp kenyataannya gak jd dia pindah ke competitor yg dengan harga lebih tinggi
sedikit tp value yg ditawarkan lebih)

Positioning

 First target motorcylce owner who had family and low income
 But the product can launch to every segments ireespective of age and income
 Repositioning to smart city car aim smart city buyer (lanuch new product nano twist)
 Make a new product category ultra low cost car segments
 Launch new product and add some feature also have good after sales service

Pricing

 Increasing price due increase price in raw materials

 Maintenace cost high
 2011 partnership with 29 banks to get fast loan programs
 Could purcase a car with credit card (first time people encourage people to use cc)

Distributiion

 Colaborate with retailer to solve distribution channel

 2011 open rural showrooms
 fuel price increase

Promotion

 Gave media attention for world cheapest car

 Free publicity gain bad news arise
 Use unconventional advertising method, launch special website for nano users
 On nano launch date, company use google ad ]use merchandise to get interest from young
segment
 Television advertisemnt
 Partnership with television channel made special reality show

Future actions

 Change major target to different segments

 Selain B2C jadi ke B2B
Swot analysis

Strength

 Low price for car

 Have media attention
 Unique promotion activities
 Good after sales service
 Have retailer to support sell the product
 Fuel efficiency product

Weakness

 Quality issues
 Bad public relations
 High Maintenance cost
 Have negative stigma in market
 Issues in site plant

Oportunities

 High number of middle class market in india

 Boost in indian economy

Threat

 Increasing raw material cost

 Competiion from other giant automobiles brand
 Competitive product have more value than tata motors product
 Public perceptions

Summary

Positioning awal: buat suatu produk baru untuk org miskin buat ngegeser motor (krn motor ga aman)
(pengganti motor) (reliable)

Yg terjadi: lack of quality, bad word of mouth (yg beli orang2 kaya) krn org miskin tinggalnya di gang
kecil

Dampaknya:

Strategi: repositioning dari rural ke urban area (new product nano twist) (sales service nya bagus) untuk
memperbaiki quality dia yg jelek
Alternative Actions:

Repositioning (targetnya baru detail)

Improvement quality of product and channel selama dia ga ngelewatin harga pesaingnya

Imp promotion

Imp PR

Imp distribution channel

Nambah target market (B2C dan B2B)

Recommended Actions:

Improving Quality

Nambah target B2B

Lessons Learned:

1. before launch product must clear and detail about segmentation target
2. good quality of marketing strategies is important to launch new product because it will leads
to increase in sales
3. People more to buy good quality and valuable product rather that cheap product.
 A. Segmentations of tata

Geographic Demographic Social Class Psychographic Shopping behaviour Product Consumer

Consumption Prediscriptions
 Urban people  Female  Low  Basics on  Buy in retail  Have brand  Purchase
 Rural people and male income wants for stores loyalty after see
 Live in big city  Age 18 to  Low product  Buy in speciality  Purchase as review
and rural place 50++ expense  Cars are stores second car about

 Lack of good years old  Student desirebale  Low product product

infrastructre  Married  Employee goods consumption  Know
support  Have  Following  Buy more product/ser
small the trend reliable vice
family arise in product verywell
market  Buy when  Price is
people needs important
on car criterion