The old adage “a person cannot be too rich or too thin”. As well-known Tata Motors’ (TTM) disappointing experience with the Nano, the $2,000 small size car it introduced with huge publicity in 2008, it is clear a car can be too cheap—at least for consumers who don’t want to be recognized with a low-end car. Ratan Tata, the chairperson of parent Tata Group, announced headlines a decade ago when he ordered up a “people’s car” which will appeal to Indian families who earlier can only own a scooter for travel. But Tata Motors has sold just 229,157 Nanos since deliveries began in 2009, and sales in March were off by 85% than previous year.
Tata MD Karl Slym insists the company will not kill the ...view middle of the document...
While buying a product like car people seek information from different sources like. Personal Sources- Family, friend and neighbors. Commercial sources: Advertising, sales people, dealers, display. Public Sources: Mass media and consumer rating agencies Experiential sources: Demonstration, examining the product. The research shows that majority of people depend on reference group for information while buying TATA NANO.
Fig shows Preference of channel of information. Since buying Tata Nano is complex buying behaviour people seek lots of information and clarification. Company should aim on minimizing the customer cost while seeking these information. The company should focus more on customer testimonials and word of mouth communication
Evaluation of alternative: After collecting the information, consumers arrive at some conclusion about the product. In this stage consumers are comparing different brands based on set parameters which he or she thinks required in the product. This process differs from consumer to consumer and with respect to Tata Nano some have given importance to the price and for few durability and safety is important.
Purchase decision. In this stage consumer buy the most preferred brand. The decision of making the particular brand is made after consumer conviction over the alternative product.Since research has revealed that people do not postpone the purchase of Tata Nano because it is difficult to make the payment. Price is not the factor which is postponing the purchase decision of the consumers. The main factor factors which made people to postpone the purchase of Tata Nano were lack of information. People have complete awareness about the price and 100% people have claimed that they are aware of the price of Tata Nano. When it comes to the features like engine capacity, mileage, safety people have mixed response and it reveals that company has not paid attention in communicating the features
Post purchase evaluation: After purchasing the product consumer will experience some level of satisfaction and dissatisfaction. An attempt is made to measure the satisfaction level of TATA NANO users after the purchase and the security concerns which is raised by many prospective users of TATA Nano.
What were the reasons for Nano Failure?
What actually went wrong? It was a combination of many factors. The plant relocation, improper schedules and with the long-drawn-out rollout and long queue/ wait lists, targeted buyers began to lose interest. Also, the first round of bookings was not the actual as people were crazy about possessing Nano and hence it was hard to predict the true demand for the car. The booking system alienated many genuine buyers who couldn’t purchase the car. Sale of the car was opened only in some selected states. Till date, it is there only in 12 States. Not only that it is the spate of fires and the horrific view of a Nano ablaze which is mainly held responsible for scaring the customers away. After that...