The Tata Nano: What Went Wrong?

Name: The Tata Nano: What Went Wrong? (English version)
SKU: 9B15A053

Arpita Agnihotri; Saurabh Bhattacharya

Product #:9B15A053

Supplier:Ivey

Discipline:International Business, Marketing

Setting:India, 2015

Details:Case (PDF) • 14 pages • 2015-11-11 (Rev: 2015-11-10)

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In 2009, the Tata Nano entered the Guinness Book of World Records as the lowest priced car in the world. It was predicted that with the Nano, the Indian car market would expand by 65 per cent. But despite the car’s initial popularity, the final demand for it was low. By 2012, the Nano plant was operating at only 25 per cent of its capacity, and by 2014, Nano production was limited to only three days per week. After introducing the Nano Twist and trying to reposition the Nano as more than a “cheap car,” Tata Motors was considering permanently ceasing production of the Nano and using the plant to manufacture other sedans. What had gone wrong with the Nano and what was in store for its future?

Learning Objectives

The case is intended for postgraduate students in management, especially marketing management and product management. It is primarily intended to highlight the concept of segmenting, targeting and positioning a new product. Furthermore, the case aims to reflect the challenges associated with a new product launch — for example, when pre-announcements should be used — and common pitfalls associated with the positioning of a new product. In the process, the case takes students through the 4 A’s of marketing and through the process of integrated marketing communications associated with a product launch.

The Tata Nano: What Went Wrong?

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Learning Objectives