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|2nd December 2010, 13:36||#46|
Join Date: Feb 2009
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Tata is marketing it to non-existent group. The supposed target market (bike owners) is not interested - they use a bike not just because they cannot afford a car, but also because
- a bike is much much cheaper to maintain
- a bike gets them to their destination much quicker than a car in our clogged roads
- parking is never a big issue with my bike (God knows how I envy this, every time I take out the Xylo, my brain automatically starts analyzing parking scenarios at the destination).
Now, those who can afford a car and want to buy one - for them Nano is not a "proper car".
I say, plop in a fuel efficient diesel with decent NVH, add a 4-speed auto box, price it around 3-3.5 lakhs ex-showroom and just sit back and watch the magic.
|2nd December 2010, 13:43||#47|
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These are my views on this subject:
Firstly the 1 Lakh price tag is a myth and people got caught up in this Hype.
Secondly people feel that this is less car due to the 1 Lakh price tag than say an Alto, but frankly it is a very capable and well designed car in it's own right and doesn't shouldn't need the 1 lakh price tag to sell.
Tata misjudged the reason why a large swatch of our population uses motorcycles. Most 150 cc motorcycles are within the price range of a used Maruthi 800, but many people use motorcycles for convenience of getting around easily not because they cannot get a used Maruthi for little more. What i am saying is that people are not going to replace their motobikes with 1 Lakh nano en-masse.
The marketing strategy should change to hyping an el-cheapo car for the masses to a competent and better alternative to Alto, 800 etc.. But in order to do this, Tata will have to enhance the product.
The mindset of Indian consumer has changed dramatically and people will pay more for a better product than overcome all shortcomings and settle for the cheapest product.
|2nd December 2010, 14:27||#48|
Join Date: Oct 2007
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From A middle class Santro owner:
Last edited by TeddyBear : 2nd December 2010 at 14:37.
|2nd December 2010, 14:28||#49|
Join Date: Jun 2009
Location: Udumalpet / Che
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I would say all boils down to one single reason.
I do not want to be seen in the Cheapest car in the market. Since I am Indian and so automatically am a Hippocratic being.
My recommendations are,
1. Spruce up the image by Bigger Wheels, Silent Engine, new hatch and fair interiors.
2. Re position as a Hip Product.
3. Offer own Financing / EMIs from TML.
4. Direct marketing campaigns ala in Maruti in Jagdish Khattar's regime.
5. Incentive Schemes for TML employees whom make a sales of a Nano.
6. Rope in a mass celebrity for brand endorsement.
When people see more Nanos on road, I think the perception may change. Got It must change. Don't let an Indian dream die so soon..
|2nd December 2010, 14:31||#50|
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if the 1 lakh car image wasn't bad enough, its actual cost was far higher. Nobody would spend 1.5~2L on a car which would be perceived as a 1L car. Its so inherently a stupid proposition (for most people) that they feel that they would be laughed at . Its like the anti - Indigo CS, or any tata car for that matter. It's a 'Less car per car' product. People would prefer to do the reverse ( say a 1L second hand alto or M800, dress it up) and be known as the 'smart' owners of a 2.5L car at the cost of just 1.5L!
They say that the ace was the first product of market research at tata. I imagine they are finding out one of the pitfalls of market research now.
Last edited by greenhorn : 2nd December 2010 at 14:39.
|2nd December 2010, 14:34||#51|
Join Date: Apr 2010
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The reason seems to be the image and brand positioning. This also connects to the pricing.
This is evident from the fact that more than 50% nanos initially booked were the top end models that are almost 2L OTR. Owners want to own a nano because its an engineering achievement and ist mostly their 2nd/3rd car.
I had booked a nano and the delivery was due in aug'10 but i cancelled it because the nano oomph factor was almost over by then.
IMO, what could possibly change the game is a diesel Engine. IMO, a diesel nano with some boot space will pull a respectable chunk from the M800/alto segment.
Last edited by benzinblut : 2nd December 2010 at 14:38.
|2nd December 2010, 14:42||#52|
Join Date: Dec 2009
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If Nano or any other car can give a mileage of 30k/l in city driving, with no frequent service issues, the masses would take the plunge. Hero Honda created a revolution in India because of this factor " cost of running".
Entry cost is not a deterrant for most Indians. What matters is running cost. Thats why the Rs.100 cablewallah still rules the roost among the middle class over DTH service.
Also Tata's past of frequent niggles/maintenance would have been in the back of every prospective buyer's mind.
Another important thing is if at all any TATA guys is follwing this thread stop here. This is not the place to get the right insight. The google searching, forum posting guy is not your TG.
Visit the man on the streets, get feedback and come up with a NANO-II.
Saying this because last time i was one of the guys from whom you took inputs, while i was lounging in an AC waiting hall.
Last edited by Daewood : 2nd December 2010 at 14:46.
|2nd December 2010, 15:31||#53|
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Even the earning in a family is less for many of non-car family they do not show interest in Nano as it is the cheapest product (Or marketed like this by Tata and Media). Either they think of taking some more loan and go for i10, WagonR, Alto etc. But Nano - they say NoNo.
There is bit "Status Quotient" here and people says Nano will not increase their Social Status rather people call them cheapest car owner (Somewhere I have heard near hometown as "Garibon ka Car") . So they try to wait for some more time for improved finances or take some more loan for next segment. This is mass myth/hysteria IMHO affecting too much sales of Nano.
By the way Nano is excellent package in that price. Once you drive 20-30 KMs then you will come to know.
Surprisingly, this was not the case with 800 being as cheapest car available in market.
|2nd December 2010, 16:17||#54|
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Well,well. All points made and elaborated in detail here. I knew this was coming all along, the moment Ratan Tata said he wanted the small car to replace the 2 wheeler for the family to ride.
Dear Mr. Tata, now that we have touched the ground from could nine, here are my two cents: Please go to Government, persuade them to make it strictly punishable offence with minimum of 1 month jail and 1 Lakh Rupees Fine if more than 2 persons riding on a 2 wheeler in India.
Then look where Nano is going to go!
Last edited by RajaTaurus : 2nd December 2010 at 16:18.
|2nd December 2010, 16:36||#55|
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Offer 'More car per car'
Reasons of the low sale:--
I think the very basic concept of offering a 4 wheeler at a ridiculously low price and targeting the bike owners was a mistake. Since its inception, the nano was always looked upon as a 'Rs.1 lakh car' ( read cheap ), and considered as a half - baked product.
Though Mr.Ratan Tata never said that the car would cost Rs.1 lakh, the media created an impression that the car would be priced at Rs. 1 lakh. Now with the Nano price crossing Rs. 2 lakh ( on road ), it has by and large disappointed the people. Secondly, as a product there are some inconvenient design elements like the fuel filler in the bonnet , the fixed hatch and odd battery location, which further add to the 'cheap' image of the car. Cars are bought for comfort and convenience, which the Nano coudn't offer.
Now,at this price point the customer today has more options , albeit pre-owned ones, which offer tried and trusted brands. Reliability is more important for the customer who is wise enough to know that owning a car is easier than maintaining it. Tata's 'reputation' for niggles made matters worst.
What needs to be done:---
1. Improve / change the product design flaws.
2. Offer more features like power steering, power windows, a bigger engine, even a diesel one .
3. Position the car as an aspirational one ( may be for the first time buyer ) and NOT as a 'cheap' product
4. Offer easy finance options.
5. Target small cities and towns.
6. Offer a better service support . Some offers like cashless ownership would help.
To sum up, Tata Motors should not forget the Indica tag line, 'More car per car'
Last edited by auto-one : 2nd December 2010 at 16:43.
|2nd December 2010, 16:59||#56|
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IMO, the best way to boost the sales of Nano is promoting it in the rural Market. Maybe they should appoint a line of dealers that sell Nano only in small towns.
Last edited by sandeepmdas : 2nd December 2010 at 17:04.
|2nd December 2010, 17:06||#57|
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The main problem with tata motors as a whole is that they are perceived as "makers of cheap priced cars" rather than 'cars with value."
Go to any showroom and when questioned about the overall quality/fit/finish/finesse of tata cars, salesperson will say," sir, itne kum price mein aur kya chahiye?" (how much more do you want for such cheap price).
|2nd December 2010, 17:10||#58|
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Another important reason is that the Tatas could not deliver many Nanos sooner after it was displayed and the production issues which delayed and the lottery system only made people form a negative opinion as only fewer cars were getting delivered and lot of dirty linen was being washed in public .
We gave the people and the Haters too much of time to put the product down. Sad it happened in the country it was manufactured and for the people it was designed for
While most of the points about why it has failed hold true. It's ironical that many people praise and are curious about the nano but have a stigma of owning one.
It's quite common to see injustice in India and Nano is one such victim if I may say so.
Lot of false perceptions have done the Nano in!!
I hope the sales pickup and the car gets its due.
|2nd December 2010, 17:11||#59|
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One month sales are low, an you write an obituary. Rather sadistic I feel, especially seeing the tone in which some people have written. Almost gleeful..Given time, it will succeed.
Anyways, the product is great and it will sell, forget all the analysis here. Indians are not a great market to sell to anyways,so a lot of luck is needed. TML sadly does not have too much of that but you cannot find fault with the product and the vision.
I would do all this analysis if it consistenly has such sales figures...I would say Tata has a lot of scope with exports as well. I would have bought the nano simply because it is a lovely piece of engineering. I would'nt even mind swapping my Fiesta for it.
What's the difference between the indian media and t-bhp now?
I did'nt really enjoy this thread.
|2nd December 2010, 17:18||#60|
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When I first saw Nano from close up in traffic, I was horrified at the sound its engine was making. To "aam junta" its a autoricksaw sound.
Now imagine you being called driving an autorickshaw!!!!
Car always have been a status symbol.
And bigger it is better it is.
When everyone knows that the car you are moving in is 1 lakh car, that charm is gone is a flash.
Mr. Ratan Tata said that he will give common man of India a decent transport. How could he not fathom the mind of comman man?
If a common man(not ones buying it as second car) buys a nano it will be like him telling the world, See I have not arrived. I bought a nano.
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