1. Branding Nano as cheap car was wrong: Ratan Tata

Branding Nano as cheap car was wrong: Ratan Tata

Rata Tata, chairman emeritus of Tata Sons on Wednesday said that branding Tata Motors small car Nano as a cheapest car was a mistake and was one of the reasons for the model not taking off as expected.

By: | Chennai | Published: July 15, 2015 4:23 PM
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Rata Tata, chairman emeritus of Tata Sons said it was a mistake to brand Nano as the cheapest car instead of affordable car. (Photo: Reuters)

Rata Tata, chairman emeritus of Tata Sons on Wednesday said that branding Tata Motors small car Nano as a cheapest car was a mistake and it was one of the reasons for the model not taking off as expected.

Tata, who was to participate in the 11th convocation of the Great Lakes Institute of Management, also took some questions from the students.

Answering a question on the Nano car, Tata said the mistake was branding the model as the cheapest car instead of affordable car. He said people did not want to be associated with a cheap car.

Brand Gurus had earlier expressed similar views to IANS and said a car in India is a status symbol and people do not want their car to be known as a cheap car.

Tata urged the graduates to focus on those things that make a difference to people and always ask themselves whether what they are doing is right.

Later speaking to reporters on the sidelines of the function Tata, the former chairman of the Tata group reiterated the same point on the Nano’s branding strategy.

He said the small car was designed by people with an average age of 25-26 and was a success beyond expectations.

However, he said the one year delay in the car launch allowed rumours to float around about the car.

Tata who is investing in start-ups said he was looking at those outfits that would help the common man.

Stating that it is important to nurture start-ups and support them Tata also urged the entrepreneurs to be a long term player and build an institution than cashing out early.

According to Tata, he is keen on investing in health and connectivity sectors.

He said there is an opportunity in e-commerce and e-tailing in India which are expected to change the face of merchandising and marketing in the country.

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  1. A
    A.K.
    Jul 16, 2015 at 11:07 am
    Yes, it is just only the mentality of Indian people that cheap may cost more in comparison to costly item. However, in case of Nano it is not applicable in true manner. Since I am using Nano LX 2012 model, I can firmly say that the TATA Motor never compromises with quality even in low cost items. Moreover, now Gen X Nano has able to remove the cheap tag stigma from Nano. Good Luck Ratan Tata ji.
    Reply
    1. G
      Ghulam Muhammed
      Jul 15, 2015 at 5:37 pm
      Nano's low price was not and should not have been a problem, if the marketing had concentrating on making bulk group purchases and easier stretched installments to promote it in that section of the people that would have bought it on the basis of price and not high b image. After all there is still large section of potion that should have been targeted through focused marketing. through media advertising was not enough for such a wonderful pioneering product.
      Reply

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