The Tata Nano was one of the most eagerly-anticipated cars ever introduced in India--not to mention being the lowest-priced car in the world--when it made its debut in 2009. This update to the example on p. 122 of
Essential Guide to Marketing Planning 2d edition explores what's happened since then.
After a strong launch period and high initial demand, the Nano has faced a number of challenges and is now selling much more slowly than it was last year. Last month, Tata sold only 509 units. Why?
- Reports of a few Nanos catching fire may have made consumers wary of the model, even though Tata offers free safety upgrades to owners.
- The ongoing global recession is hurting demand.
- Tata says that buyers are having difficulty obtaining loans to buy the Nano.
To stimulate purchasing, Tata has announced a new four-year warranty (see image above). The warranty will cover previously-purchased Nanos as well as new purchases. Tata has also arranged for its financing division to offer
low-interest loans to Nano buyers. Will these marketing steps accelerate Nano sales in 2011?
