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CREATING A NEW BRAND FOR A NEW MARKET. TATANANO - ESTIMATING THE TUUE COST OF THE CHEAPEST CAR IN THE WORLD - Case Study Example

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CREATING A NEW BRAND FOR A NEW MARKET. TATANANO - ESTIMATING THE TUUE COST OF THE CHEAPEST CAR IN THE WORLD

Apart from all these features and benefits offered by the car, it is being promoted as a part of one of the biggest brands of India, Tata. Tata has already high share and in the vehicles industry of India for around 70 years. The company has developed strong brand equity by supplying low cost and quality products with innovations to compete with the international market. Tata is considered to be the ideal developer of the cheapest and most fuel efficient car in the mass market of India as they have the advantage of 65 years of market experience and brand loyalty in vehicle sector. For this reason the company has made huge investment in this Tata Nano project. Other competitors do not have a brand loyalty as Tata in the target market and for this reason have been reluctant to make huge investment in any new project. Tata takes the first mover advantage because of which Tata is market leader today in the cheapest vehicle customer segment. Question # 2: Most of the international countries including EU are concerned about the environment effect which will be generated by the launch of Tata Nano. The most important effect is pollution which will be increased because of the excessive use of Tata Nano by consumers, as a result there will be high consumption of fuel and hence high emission of carbon gas would take place. This in turn will cause several diseases. Apart from this, when huge quantity of cars will be launched every year it will make the traffic congested in roads which in turn will cause traffic jams, hence creating daily routine problem for people. In response to all these environmental concerns of international countries, Tata justify their Tata Nano as a low pollution emission car as compared to other cars and they considered the car as an alternative of motorcycle and scooters. Tata Nano would create a bit more pollution then motorcycles and scooters but it would improve the living standard of the middle class sector. The people of India gives the preference to Tata Nano because a major part of population of India lives in rural areas and facing difficulties in travelling on motorcycles and scooters with their families, so Tata Nano will be a great alternative for them to use the car for business purpose and for family use also. Hence this car is beneficial in both aspects. Question # 3: The other companies would be concerned because Tata will supply their Nano product in a very large segment of around 50 million potential customers. Along with this the company already has high brand equity and loyalty in the mind of the consumers. For this reason, all other vehicle producers have been highly concerned with the situation. The launch of Tata Nano will directly affect the Bajaj motors low price and consumption vehicle. At the same time many producers of motorcycles and scooters will also be affected by the production and launch of Nano production. With a huge production plan of Nano, Tata motors can introduce this vehicle in international market also because they are bearing a very low cost of production. Along with this the company has high brand image in the international market as one of the oldest producers of vehicles with quality products. Tata Nano would offer customers in foreign countries with a low price car option as it would cost around US $2500 which is the cheapest among all cars. Question # 4: With the ...Show more
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Summary

Question # 1: The Tata Motors introduces the Tata Nano as the world’s cheapest vehicle in the largest market of India, which is middle class market. At the same time the car has been positioned as the lowest fuel consuming vehicle in the Indian market. Apart from this, it has many other good features that satisfy the needs and wants of the target market like: simplicity in design and efficiency…
CREATING A NEW BRAND FOR A NEW MARKET. TATANANO - ESTIMATING THE TUUE COST OF THE CHEAPEST CAR IN THE WORLD
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