It also emphasizes on novel strategies that can be implemented for sustaining. The nano is constructed of components that can be built and shipped separately to be. Tata nano was sold as another car in conventional dealerships. Ratan tata for his determination to build a low cost family car that has come true, finally. Page 7 of 17 case study on tata nano aman ahuja a3906415445 history of tata nano the idea of tata nano came to mr. Tata strategic management group tsmg is the strategy centre of excellence for the tata group. Blue ocean strategy business competition in india by. The creation of tata nano is a result of innovation leading to new market creation to tap. Through nano, which denotes high technology and small size. The turnaround of tata nano sage journals sage publications.
In november, while overall auto sales in indias booming economy rose more than 22%, tata sold only. Jan 11, 2011 its been a rough season for tata motors muchpublicized peoples car, the nano. Oct 30, 2014 how do you view tata nano as an innovation. The story of tata nano a different perspective techhoot. Another tata project brought together engineers from tcs, titan industries tatas watch manufacturing company, and tata chemicals to develop a compact, inhome waterpurification device. The creation of tata nano is a result of innovation leading to new market creation to tap latent opportunities lying at the bottom of the pyramid in the automobile, four wheeler segment.
Setting up of production plant in wb caused a lot of tension. The case focuses on the translation of ratan tatas chairman of tata motors vision of a safe affordable car for the masses by ravi kant, managing director of tata motors into the nano project. Business growth training program is specially designed for entrepreneurs and business owners seeking exponential growth in. The human development index was the very first initiative of its kind, both within tata and across the world. The group operates in more than 100 countries across six continents, with a mission to improve the quality of life of the communities we serve globally, through. Distribution strategy in the marketing strategy of tata motors with 576 car dealers across 424 cities in india, tata motors holds a robust dealers network in the country through it sells more than 56,000 in the month of july 2018. Creative innovation and complementary upstream internationalisation. What went wrong with tata motors nano an amazing invention that didnt turn out to be an innovation thats how one expert described tata motorss nano. Blue ocean shift strategy pedagogical materials drybar comptenickel marvel justin trudeau blue ocean finance tata nano a b nintendo wii rehability wikipedia gillette historical moves salesforce skype apple yellow tail ntt docomo cirque du soleil implementation lecture napoleon bonaparte scenario case selfdiagnostic tool. The vision was to give the people of india a car which is not produced anywhere else in the world. Nano is a car which has breathed into life due to one man. Nov, 2009 the nano might do ok, but thats no peoples car.
To comprehend the positioning strategy adopted by tata nano in india. Tata nano is made a budget friendly car and it was launched on a price tag of one lakh rupees rs. Sep 15, 2014 business growth training program is specially designed for entrepreneurs and business owners seeking exponential growth in their business. How the peoples car failed to reshape the auto industry and create new growth. When tata motors launched the nano seven years ago, expectations of the car becoming a roaring success were sky high. Blue ocean strategy business competition in india by viral. Tata motors is basically gives huge preference to the creating and innovation new products. What went wrong with tata motors nano denise lee yohn.
With many successful launches of both commercial and passenger vehicles such as tata 407s, tata sumo and tata indica, tata motors finally decided to launch a passenger vehicle that will set a new trend of easily affordable passenger vehicle the nano. Answer 2 of the discussion questions two out of questions 2, 3 and 4. Perceived as a cheap product which repels the aspirational customers. Marketing mix of tata motors analyses the brandcompany which covers 4ps product, price, place, promotion and explains the tata motors marketing strategy. Pdf valuesbased product innovation the case of tata nano. It was billed as the peoples car, the cheapest in the world, the base model costing just rs 1 lakh. The new technologies and innovative products enabled tata motors to expand abroad and to establish its operations in the uk, south korea. All the three innovations have the potential to redefine markets. The car was nofrills, but designed as an affordable transport solution for a family of four, and offer its maker tata motors a fillip in the growing indian car market. Tata nano free download as powerpoint presentation. Tata nano the peoples car case harvard business school. This car was targeted to be bought instead of motor cycles by the middle class people.
Also, comment on any integration of the metaphors with the case, andor on any implications of the venture and nano car the natural environment. It is a personal initiative of ratan tata, the groups chairman, designed as a safe alternative for the indian families crammed onto scooters. According to tata, nano has a roomy passenger compartment with generous leg space and head room, and it can comfortably seat four persons. They have been innovating new products continuously over decades starting from the steam road roller in the year 1948. 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. According to tata motors 2009, tata nano was launched by ratan tata during the auto expo 2008 at a price of 100,000 rupee rs. The new strategy kicked into high gear in 2004, when ratan tata hired alan rosling, chairman of hong kongs jardine matheson group an investment bank with large holdings in tata industries and former director of a jardinetata automotive joint venture, as an executive director of tata sons. Tata strategic management group tata industries tata group. Designed to lure indias burgeoning middle classes away from twowheelers, it received much publicity. The purpose of this work is a critical analysis of an innovation in the automotive industry, the tata nano, the worlds cheapest car unveiled by tata motors. The tata group has been present in europe since 1907, when tata limited was established in london. Tata motors transformational resource acquisition path berlin.
The case focuses on the translation of ratan tata s chairman of tata motors vision of a safe affordable car for the masses by ravi kant, managing director of tata motors into the nano project. The focus is on the product design, pricing, promotion, and distribution. Tata nano has an apt tag line peoplescar and this concept has led to its popularity in the indian automobile market. The case explores how tata motors, indias largest automobile company, developed the nano, the worlds cheapest car. The framework, originally initiated by tcci in collaboration with the united nations development program in india in 2001, has then been refined with training input from the confederation of indian industry cii, price waterhouse cooper, the icici bank, and the ashoka group. Blue ocean strategy disruptive innovation emerging markets innovation. With the tata nano, meeting the price target set by ratan tata meant the design team had to start from scratch.
The curious case of tata nano car the nordic frugal. The tata nano is one such car that has been in the news for quite a few years, for reasons good and evil. Of course, theres nothing wrong with having an unexpected market arise thats actually the heart of disruptive innovation. Brand registered a staggering growth of 64% in its domestic sales for the first quarter apriljune 2018, fy19 at 164,579 units compared to 100,141 units over. In the uk, tata is among the largest industrial employers, operating in over 40 locations. Tata nano is a product of the parent company tata motors and built with the intention of manufacturing and selling in india.
The car has been widely publicized as the worlds cheapest car at rs. Ratan tata kept his promise and delivered the nano almost at its target price, forcing global car makers to take challenge. The creation of tata nano is a result of innovation leading to new market creation. The case raises questions around breaking the pricequality barrier and changing. The analysis of indias innovative automotive industrie. Excellent advertising of the tata nano car across tvcs, print media, online ads etc. To discuss the innovation strategy for tata nano, we first discuss the constraints as per which the company had to operate.
To meet the target, the design team had to start from. Innovation is driven by customer and market requirements as well as competition among suppliers to a need requirement and shaped by the evolution of technology adner and levinthal. Its been a rough season for tata motors muchpublicized peoples car, the nano. Marketing strategy of tata motors tata motors marketing. Major hbr cases concerns on a whole industry, a whole organization or some part of organization. The three key drivers are better communication and recognition of innovative ideas and efforts, facilities and initiatives that enable learning from other companies, and support for collaborative research and partnerships with academia. Tata nano has rewritten the evolution of transport by creating history as the worlds cheapest car. Innovation, new market creation, positioning, automobile, india. It became a dream car for every person belonging to the lower middle.
The tata nano is, however, a disruptive innovation produced for the emerging market of india, where 95 percent of the population belong to the bottom of the pyramid. The perception about tata nano changed from the peoples car to the cheapest car. This case and the accompanying threepart theorybased movie describe tata motors strategic move to create and launch the tata nano and the successes and setbacks of the tata nano team in actualizing this. Tsmg works closely with the chairmans office and the leadership of tata group companies to develop and support implementation of the groups business strategy.
As of 2020, there are several tata motors marketing strategies like productservice innovation, marketing investment, customer experience etc. Tata motors marketing mix 4ps strategy mba skoolstudy. Tata group profile founded by jamsetji tata in 1868, the tata group is a global enterprise, headquartered in india, comprising over 100 independent operating companies. 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. May 29, 2019 market analysis in the marketing strategy of tata motors with a market share of 44% in commercial vehicles segment in a 20172018 brand is a market leader in the sector. His off the cuff estimate for the cars price became a stretch target for the product team1. But now, tata is preparing to take the nano to other emerging. Innovation, new market creation, strategy, nano, india. Why did the tata nano fail as a disruptive innovation.
Product analysis tata nano model pic as has been mentioned, the tata nano is the smallest and cheapest in the world. Manoj joshi abstract objective of the paper this research paper focuses on how innovations support new market creation emerging from latent opportunities for lowincome group. A key strategy was to defeature unnecessary attributes to the extent of providing only one wing mirror and only three wheel nuts per wheel. As part of the tata group, tata motors has been a strong part of the indian history. The objective of the study is to explore how innovation supports new market creation emerging from identification of latent opportunities for low. Tata case answer 2 of the discussion questionstwo out of. Lot of car companies were afraid as tata did good marketing, tata nano was compact and affordable. But less than three years later, the tata nano continues to underperform in terms of sales, and in late 2011 underwent its second brand overhaul. Tata nano is a low cost car by the positioning itself as the worlds cheapest car with a price tag of. Tata motors is a leading automotive multinational manufacturing company headquartered at mumbai, india.
Innovation and product innovation in marketing strategy. Tata nano the tata nano is a small car manufactured by tata motors made and sold in india. Established in 1945, the companys products include passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment and military vehicles. In pursuit of excellence and to keep up to the initial promise made to people that tata will come out with a compact, quality car within a price tag of rs. They should expand the reach of stakeholders, choose nontraditional partners, and adopt a native capability. Only one entry is due the last day of the module second sunday any 7th edition users. It had to rethink the production, marketing, and distribution strategy. Oct 25, 2017 tata nano is made a budget friendly car and it was launched on a price tag of one lakh rupees rs. Tata nano the peoples car case study solution and analysis. Tsmg also helps tata companies in developing and incubating new business ideas. The tata group has a threepronged strategy to encourage and enhance innovation across business sectors and companies. Pdf the role of values and changing values in innovation is not yet well understood.
Tata nano and gillette guard are both frugal innovations. Tata nano car strategic management free 30day trial. Tata nano marketing strategies case study template. Misalignment of strategy propositions and consequences value proposition utility price. He also served as a strategy consultant and as director of corporate management training pro. Innovation is driven by customer and market requirements as well as competition among suppliers to a need requirement and shaped by. Lets see why exactly tata nano did not succeed in indian automobile industry. Tata tata nano tata nano is another example of reverse innovation. The tata nano is the cheapest new car in the world. Marketing mix of tata nano tata nano marketing mix and 4 ps. Jaguar land rover, tata steel and tata motors are leading tata companies in. The case of the tata nano allows elaborating upon the potentials and risks of valuesbased innovation through a longitudinal analysis of three stages process.
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