In the world of business and marketing, positioning of a product becomes very important in order to drive sales. In this regard, Tata Motors appears to have got it wrong. At least as far as the Nano is concerned. Indeed, when the company announced the launch of Nano, the world's cheapest car, it generated a lot of buzz. There was considerable interest in how the company will be able to manufacture and launch the Rs 1 lakh car. More importantly, will it do well? However, ever since its launch, the car has failed to take off in a big way. So much so that Jack Trout, who is the pioneer of the 'positioning' theory, opines that Tata Motors will be better off killing brand Nano.
While India's GDP rose, so did the incomes of the middle class. And many of them had aspirations to graduate to better models. No one was keen on buying the 'cheapest car' which was how Tata Motors had positioned the product. Because of the poor performance of the car, Tata Motors has also been compelled to re-think its strategy. It is now looking to sell it as a 'smart city' car. Whether this change in strategy will reverse the fortunes of this product remains to be seen though.
While India's GDP rose, so did the incomes of the middle class. And many of them had aspirations to graduate to better models. No one was keen on buying the 'cheapest car' which was how Tata Motors had positioned the product. Because of the poor performance of the car, Tata Motors has also been compelled to re-think its strategy. It is now looking to sell it as a 'smart city' car. Whether this change in strategy will reverse the fortunes of this product remains to be seen though.
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