Asked by : Jayant Arrawatia, Partner, JRC Solutions
Industry : Advertising/PR/MR/Events
Functional Area : Branding
Activity: Question posted: 04 10 2009 06:41:16 +0000, 5 answers, 5132 views, last activity 07 06 2010 20:18:08 +0000
This is just an out of blue question, I was thinking for few days.
What has been the TATA NANO's marketing strategy, no big ads running in media still people wants to buy the car.
I dont think, that you can create a demand for the product, just on the basis of reduced cost. What is it, that TATA had put in NANO, that every person is behind buying it out.
As read in the news paper, Tata's are making money just from the Application form sale. Rs 300 form will be filled by more than 20 million(expected by me) people of India. Think of the amount he will get, which is non refundable. Additionally, Ratan Tata is asking for booking amount, with the form. He will keep the amount with him till the time allotment is not done. The minimum amount is 95K, again multiply the figures, it will run into billions.
Now tell me how do you rate the strategy of Tata's with no much information available on the car, mass is going crazy to buy one.
It was TATA Motors, who last month declared that " we are going thru financial crisis", and to meet the financial requirement, they floated the TATA Capital FD, which was again a success.
Hence, i would like to know from you all, that what is the key marketing point, which makes TATA a success.
Your inputs will be of great help, and later on if we decided and wish, it could be a very enriching case study for the advertising and management officials.
Nano attracted media and public attention for two reasons which were antipodal;
1. The Singur controversy (negative)
2. The smallest affordable car (positive)
Anything that mires in controversy is always at the top of the mind recall. I think TATA Motors PR department has been very proactive and have turned the controversy to their advantage. Also, y\the positive attention from overseas experts has added a plume in their cap. So they have managed to keep it simple and uncomplicated as far as the marketing strategy goes!
THE NAME TATA HAS ITS OWN UNRIVALLED,UNQUESTIONED IMAGE,GOODWILL AND HAS EARNED THE CONFIDENCE OF PUBLIC FROM ALL WALKS OF LIFE FOR DECADES.TATAS HAVE LEFT A MARK IN ALL THE FIELDS THEY HAVE ENTERED,ESPECIALLY AUTOMOBILES.TATA TRUCKS TILL DATE ARE THE MARKET LEADERS.AUTOMOBILE IS NOT A NEW AREA FOR TATAS.THEY HAVE SPENT ENOUGH TIME,MONEY AND ENERGY IN BRINGING OUT THE SMALLEST AND CHEAPEST CAR IN THE WORLD.WHEN THERE IS A MARGINAL DIFFERENCE BETWEEN THE PRICE OF A PREMIUM 2 WHEELER AND NANO UNDOUBTEDLY MANY WHO COULD AFFORD WOULD PREFER TO OWN A CAR FOR THE SAKE OF COST,CONVENIENCE,COMFORT AND STATUS.WORD OF MOUTH PUBLICITY BOTH NEGATIVE & POSITIVE WAS NOT GENERATED BY TATAS AND WAS FROM OTHERS FOR VARIOUS REASONS.RATAN TATA IN ONE OF HIS INTERVIEWS HAD SAID THAT HE WILL STAND FIRM IN HIS DECISION EVEN IF A PISTOL IS PLACED ON HIS FOREHEAD.SUCH IS HIS CONVICTION.HATS OFF FOR BRINGING OUT NANO.
Well, with the answers received, the following are the factors working towards NANO are:
2. International showcase
3. People's car
4. Pioneering concept.
5. Word of Mouth Publicity
The above points are well taken.
Apart from the above points, a Sentimental or emotional attachment is also working behind it. As we can see that TATA has always banked on this strategy to attract and attach the masses with their product. Like Tata Salt - Desh ka Namak , Bajaj Scooter - Hamara Bajaj etc.
Will appreciate some views on this as well.
The marketing approach for Tata Nano is based on word-of-mouth and publicity blitz. The Nano concept has caught the popular imagination world-wide to such an extent that publicity management is the KEY ELEMENT of Tata Nano marketing. If, God forbid it should not happen, a small defect like say a faulty braking system shows up - then the bad news will get round just as much as the good news. So the focus of Tata Nano marketing is publicity management.
Next the marketing dept, ought to put positive customer testimonial advertisements - this will help keep up the tempo. It will avoid any attention fatigue on the concept.
The major challenge for the marketing wizards at Tata Nano will be to keep up the buzz and publicity management.
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