[gshanky]

Originally Posted by anmol2k4

They didn't market Nano as 1 lakh rupee car they marketed it as "Poeples Car", in fact they haven't done much marketing as it isn't necessary. It was media which was doing touting it as the 1 lakh rupee car, Tata had no option but to accept the challenge.

Willingly or un-willingly the current image of nano has become 1 lakh car. All I am saying is that TATA has to figure out a way to come out of this impression and try to market NANO as an affordable and stable car.

Originally Posted by anmol2k4

Akai went away because Akai Japan ended the brand licensing deal with Videocon. Videocon and other companies like Samsung, LG etc continue to sell their TVs in similar price range.

Let's not go off-topic. But none of the TVs in market that I recall are marketed as Rs.5000 TV or Rs.10,000 TV. Though they are in the price range, they don't market it as a "price-band" product so that if at all the raw material cost increase, then it is more difficult to market the product in higher price band.

Originally Posted by anmol2k4

As far as succeeding with price range marketing is concerned there are too many success stories to state take for example Netobooks from Asus Acer MSI etc and in mobile phone space Nokia, have lost 12 percent market share during the past year to new Desi players like Karbonn, Micromax, Spice Mobiles, Lemon, Max and Lava all competing on price.

I don't remember ASUS or MSI coming out with a $200 netbook or even marketing to comeout with one. I remember about OLP negroponte trying to come out with $100 laptop and we all know what happened. But cell phones with service provider discount is a completely different thing. I don't want to compare that will TATA trying to market NANO for 1 lakh - which everyone can agree is not a sustainable marketing campaign.

Now, TATA didn't come up with it, they just accepted the challenge is not going to fly because TATA not only accepted the challenge but got a lot of marketing mileage throughout the whole world. And that's a very good thing because they did sell (and still selling as of now) cars for 1 LAKH.

IMO it is time for TATA to move on from the 1 Lakh car campaign and market NANO differently.

[ottocycle]

I support the price hike of NANO given in input costs. Compare this with the food inflation. Food prices have atleast doubled from what they were some 4 years back.

[CARDEEP]

Originally Posted by ottocycle

I support the price hike of NANO given in input costs. Compare this with the food inflation. Food prices have atleast doubled from what they were some 4 years back.

, moreover, Nano is still the cheapest car one can buy from the showroom in India.

I had a taste of the car's interiors when I visited Tata's showroom in Delhi & was surprised that the car was more spacious & felt more comfortable than M800 or Alto. Thus, rendering it a better city car over the two (its obvious competitors).

[Amartya]

Originally Posted by CARDEEP

, moreover, Nano is still the cheapest car one can buy from the showroom in India.

I had a taste of the car's interiors when I visited Tata's showroom in Delhi & was surprised that the car was more spacious & felt more comfortable than M800 or Alto. Thus, rendering it a better city car over the two (its obvious competitors).

Correct, and you'll be surprised how the tiny car feels really peppy in traffic with the A/C on. By the way, the A/C too is quite good.

The 4% price hike is absolutely fine, and more than in tune with the rest of the industry.

[gshanky]

Seems like TML is really serious about the price rise. as per their news release, TML has started notifying all the retainee -customers about their applicable price in lieu of the impending price increase.

Tata Motors today announced that with its 250,000-unit/year Sanand plant becoming operational ahead of schedule, the company will speedily ramp up production of the Tata Nano. Accordingly, the company has begun intimating retainee-customers that their cars are coming up for delivery. This is the final step, before the company opens up sales of the Tata Nano.

Retainee-customers are those who had retained their booking with the company though not selected among the first allottee-customers from out of the booking process of 2009. Despite a steep increase in input prices, their Tata Nanos are being priced only three to four percent higher, depending on the model, than the price announced at launch. The terms and conditions of booking had provided that the applicable price of the car for a retainee-customer would be notified at the time of delivery. Also, as announced at the booking, they have received interest on their deposit.

The allottee-customers, still awaiting delivery, will get their cars at the same price as announced at launch on March 23, 2009. Tata Motors would like to reward the loyalty of the allottee-customers for bearing with the company through a prolonged period of delivery, given the capacity constraints till the Sanand plant became operational. As a gesture of goodwill and gratitude, the company has announced for them a choice among a one-year free annual maintenance contract (AMC), or free accessories worth Rs.4000/- or an extended warranty.

The Tata Nano has already received an overwhelming response. With the ramp-up at the Sanand plant, customers desirous of the car will soon be able to freely purchase the Tata Nano.

[.sushilkumar]

Originally Posted by gshanky

Seems like TML is really serious about the price rise. as per their news release, TML has started notifying all the retainee -customers about their applicable price in lieu of the impending price increase.

Yes, they are serious about customer service . i guess, they are very keen to see their cars standing in individual garages rather than on taxi stands and with fiat partner ship, they have everything in hand to achieve that. ( fiat's proven engines and drive-trains and their own vast service network ) .

[GTO]

I'm surprised no one mentioned it yet. This is the first price increase for the Nano, in the same time span that other cars have had 3 price hikes! Lets not forget that the Nano would (presumably) have a smaller opportunity (margin / buffers) to absorb inflationary pressures, rather than passing it on to customers.

I'd like to know why its okay for other pricier hatchbacks to raise their MRP more frequently than the li'l Nano.

[mjothi]

Originally Posted by GTO

I'm surprised no one mentioned it yet. This is the first price increase for the Nano, in the same time span that other cars have had 3 price hikes! Lets not forget that the Nano would (presumably) have a smaller opportunity (margin / buffers) to absorb inflationary pressures, rather than passing it on to customers.

I'd like to know why its okay for other pricier hatchbacks to raise their MRP more frequently than the li'l Nano.

+1.

And the only I reason I see in here is that it was suppose to be a 1 Lac car. So, it gets more attention due to its initial claims that was made almost a decade ago I think

[airbender]

Originally Posted by mjothi

+1.

And the only I reason I see in here is that it was suppose to be a 1 Lac car. So, it gets more attention due to its initial claims that was made almost a decade ago I think

Tata never advertized the car as a 1 lakh car. It's the media. Even Ratan Tata has talked about it during Nano launch. 4% hike is quite OK. But I hope they take care of the engine noise levels and add a fifth door in the back. Those two are only things missing in Nano and with them Nano will be a runaway success. Any word about Diesel nano.

[AbhiJ]

Most commodities have gone up over the last year, hell, rubber has increased in prices from 50% - 100%. (Depending on Type)

4 % is very fair IMO.

[gshanky]

Originally Posted by GTO

I'm surprised no one mentioned it yet. This is the first price increase for the Nano, in the same time span that other cars have had 3 price hikes! Lets not forget that the Nano would (presumably) have a smaller opportunity (margin / buffers) to absorb inflationary pressures, rather than passing it on to customers.

Originally Posted by airbender

Tata never advertized the car as a 1 lakh car. It's the media. Even Ratan Tata has talked about it during Nano launch. 4% hike is quite OK.

Originally Posted by mjothi

+1.

And the only I reason I see in here is that it was suppose to be a 1 Lac car. So, it gets more attention due to its initial claims that was made almost a decade ago I think

It could be argued that TATA may never have advertised NANO as 1 lakh car. But they also did not (do enough to) remove that misconception. So, the common man still thinks of NANO as a 1 lakh car. IMO TML should improve the quality of NANO and start advertising along the lines of "PEOPLE's CAR" or similar so that people slowly stop equating NANO and 1 Lakh but just remember that it is an affordable and reliable car.

Originally Posted by GTO

I'd like to know why its okay for other pricier hatchbacks to raise their MRP more frequently than the li'l Nano.

I am not sure about other cars, but with such a low price point and evevn lower margins, NANO deserves an increase albeit a small one in lieu of the inflation.

[supremeBaleno]

Originally Posted by gshanky

But they also did not (do enough to) remove that misconception.

Correctly said. And this is as good as acknowledging that it is a 1-lakh car.

Also, I wonder how the media would have arrived at the price-point on their own ? And when Mr.Tata made his "A promise is a promise" comment, wasn't he referring to pegging the car at the promised price-point ? Atleast that's the idea I got.

[.sushilkumar]

Originally Posted by supremeBaleno

Correctly said. And this is as good as acknowledging that it is a 1-lakh car.

Also, I wonder how the media would have arrived at the price-point on their own ? And when Mr.Tata made his "A promise is a promise" comment, wasn't he referring to pegging the car at the promised price-point ? Atleast that's the idea I got.

Sir, Mr Tata Did kept his promise of 1 lakh ex showroom price for first 1 lakh cars. Again he has said at that time as well, that he will try to keep the price at 1 lakh only but he needs to take care Input costs as well. What so ever be the reason , he cannot pay from his own pocket to keep the price tag at 1 lakh . he is answerable to share holder like Us in long run.

thinking now, i think, hike of 6000 to 7000 is justified .

[airbender]

Originally Posted by gshanky

It could be argued that TATA may never have advertised NANO as 1 lakh car. But they also did not (do enough to) remove that misconception. So, the common man still thinks of NANO as a 1 lakh car. IMO TML should improve the quality of NANO and start advertising along the lines of "PEOPLE's CAR" or similar so that people slowly stop equating NANO and 1 Lakh but just remember that it is an affordable and reliable car.

First of all TM advertizement of Nano is very little. I would not call it a misconception as the base variant was priced at 1 lakh. Even during the launch Ratan Tata mentioned the base variant will be one lakh and prices will be protected for first one lakh customers. So he did imply that prices will raise later. As a business house working for profit, I do not except them to come out and say this is not a 1 lakh car when it is.

[gshanky]

Originally Posted by airbender

First of all TM advertizement of Nano is very little. I would not call it a misconception as the base variant was priced at 1 lakh. Even during the launch Ratan Tata mentioned the base variant will be one lakh and prices will be protected for first one lakh customers. So he did imply that prices will raise later. As a business house working for profit, I do not except them to come out and say this is not a 1 lakh car when it is.

Going forward, i.e. after the 1 lakh deliveries are completed, even the base variant will have its price increased in the range of Rs.1,00,000 to Rs.1,04,000 and that's when the misconception would arise.

And TATA should plan for that sooner rather than later.