Yesterday in the MBA sem 2 Innovation class, I discussed the case study on Tata Nano, why it failed in the Indian market. This is a copy of the case.
The students took part very well in the case. Some of the points they listed are highlighted here.
- It was a big branding blunder, branding the car as a cheap car for the masses.
- The car does not have basic safety features, or air bags
- The first couple of incidents of the car catching fire spread bad publicity about the safety aspects of the car.
- Instead of looking at rear engine as a step to increase the car seating space volume, the public found it difficult initially to accept the rear engine at all.
- Good mileage and low maintenance costs are advantages for Nano.
- The car can be used only for city driving, not for long distance drives as it does not have enough safety features.
- The rebranded Nano, electric model, is picking up in the country.
- The fact that Nano is picking up in sales in Europe and South America is because of the affordable model branding done there.
The class finished with a quiz on the case.
George.
