Sri Balaji Society Induction presentation 2019: Reasons for failure of TATA NANO.

Sri Balaji Society Induction presentation 2019: Reasons for failure of TATA NANO.



hello hello respected faculty panel members all the student managers myself Nisshin Deshpande and myself sorry today we are here to present a PPT so before going for a topic so a couple of questions so after graduating from SBS how many of you would you like to buy a car yeah everyone right so how many of you would like to buy Nano Tata Nano now see no hand is that the reason and that's what our topic is reasons for failure of Tata Nano reasons for failure of Tata Nano so for a while introducing so will first introduce our topic then we'll give some financial details about and then we'll tell you about nano car and then we'll tell you about stents why we are telling you stands just because even after having so even after having so many strengths still Tata Nano failed so after that we'll tell you reasons for failure it will be followed by current scenario and then we'll conclude it conclusion so both of takun are no so there was the story that Ratan Tata was travelling somewhere and he saw a family like this traveling on the scooter he thought why shouldn't we make a car which costs just more than that or double of it and it can it will have more convenience for them so he thought of making the car in a lakh rupees just a lakh so so he posed a both of Tata Nano and yeah so we'll follow him okay so this is a total market share of Tata Motors okay so first will we see the market size 2.9 cover units and mock Tata Motors share is 7% so if we go into that 7% we will see that the rate of Tata Nano is negligible it is close to zero so these are the at year two L cells of katana know had the time of launch it was planned at at least we will sell to like 50 thousands of unit per year gas per year and these are the data number of cars sold per year so 2017-18 it's one five zero two it's not even one percent of what they are taught about nano you are manufactured by Tata first I'll introduce you're introduced wrong shank in in Delhi 2008 first car delivery was started in July 2009 we will be telling reason for such a time span and it initially there is response so far first a four first one like us they were like more than two like people are wanted to buy the castle so there's some really good strong points about that and I know first off report was attention-seeking potential so being the one lack with his car it had tremendous amount of attention seeking potential it was followed by media coverage everyone was talking about it so every newspaper every news channel had has stories about it so after Barack Obama visited and he also praised and talked about Tata Nano car and it was a big news after that so also the value for money was very good because in a lack or one and a half lakh you were getting so many things okay so why got a nano field probably we are coming to the best part of the presentation most important so firstly the single factory pullout okay so initially Tata Motors wanted to set their plant in Singur West Bengal they were granted more than nine hundred acres of land by then live government in West Bengal so they set up a plant they have put a lot of money effort and suddenly out of nowhere farmers who okay with our lands tracted agitation they were like they have government has taken their land without their consent giving less price for them so to tell you month of energy was in the twenty six days and one strike for them so one states loss other states gain are in the Modi then Chief Minister of Gujarat inaugurated the plant in Gujarat okay so focus on small towns and villages so basically Tata Motors wanted to focus on small towns and village but if we see in the small towns and we'll adjourn you unless the size of a family is a large there are no more number of people in the family and the conditions of Rhoda's are not that valuable it is better not to talk about monsoons so so this was the major reason lacking quality due to cost control so Tata Motors mentioned they were going to make a car in 1 lakh rupees so they had to cost control because in one Lac car you can't provide the best quality car so this where the reason so those many incidences which were being reported in news channels so you can see the pictures many of them from all over the India so Tata Nano is catching fire at many of the locations so it created a bad perception about car it was of low quality not reliable so the perception about car was not not that good in the minds of people so other than that branding was by default and not by design branding was being done by default and all the media houses covering the new channel was because of the cheapest car or burning car like this but was not by design or the approach of the car so we'll be showing more than video how unsafe the car was no please just to add that this was the first first first dry or was being taken by a sorry so in the platic was first dying was because I was being like that so there was this incident only because of small you turn it off a log okay so Karen scenario or actual sale so in 2017-18 were one five zero two units okay the project lost the money and it was confirmed by German former German Tata Sons JA Cyrus mystery only one Nana was assembled in June 2018 against 275 June 2017 as of July 2018 the production has been stopped so you can see today it's no longer a 1 lakh rupee car it starts from two point three six lakhs and goes up to three point two men two main lags so there are many options available for them for bias in their market they can even purchase better car at this price so if you can see segment analysis in this segment there was this four car that we took Tata Nano Jennings which they introduced afterwards renaat squits that dexon go and Maruti Alto k10 you can see Maruti Alto k10 has been being very very well and Tata Nano at the bottom being very bad even in February March and April May this year they could not sell even one unit okay so come to conclusion strong competition from second and market okay so nana was getting a very strict confidence from second-hand market so people were thinking like instead of buying such a cheap car we would have something more and we'll get a better quality second-hand car whether it be Centro indica Vista so people started thinking like that too so it affected their selves so should have been marketed as a smart car instead of cheap cars so one of the marketing failures we will say that instead of the consistently they were positioning it as a cheap car cheap car cheap car in straight days they have put this as a smart car smart pad smart car the matter would have been different so your positioning of the Nano really went wrong so I would like to take an example or Augustine sir drives BMW right then W you drive BMW right so how what perception do you not when it has been the primary successful man right so no one wants to buy a cheapest car so it in India we we take VC success as the car someone drives so positioning of the Nano went really really wrong after that marketing after incidences there was this many incidences which were being reported and after that no marketing was being done and campaign were being run by Tata Motors as we see in in case of Maggie and Cadbury there's tremendous amount of but tremendous amount of campaign work being done by the complaints but in in case of Tata it was not being done so the marketing marketing after incidences were not done correctly so yeah thank you thank you

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