The pattern of responses evoked by any truly revolutionary concept usually goes through three stages. At the beginning the idea is met with incredulity. ?It?s impossible. It simply cannot be done.? Once past this stage, the incredulity morphs into cynicism, even contempt. ?It may be possible, but it?s not really worth it.? And of course, once the concept becomes reality, the same people adopt it wholeheartedly, and almost usurping credit for its existence. ?I told you so. I knew it all along!!? This pattern has more or less repeated itself in the case of Nano, the launch of which seems to have stunned the entire world and monopolised media?s attention. And from the crowds that have been thronging to catch a glimpse, it is evident that people cannot get enough of it.
It was barely five years ago that Ratan Tata announced plans to build a car that would cost less than Rs 1 lakh, or around US $2500. Very few people would have been willing to bet on it, despite the fact that not too long ago, Tata had launched the Indica, India?s first completely indigenously produced passenger car in the face of somewhat similar scepticism. In the case of the Nano, rival automobile manufacturers dismissed the idea out of hand. Even when Tata?s intent to keep at it became evident, they continued to ridicule the project, certain that the eventual outcome, if any, would be in the form of an enclosed motorcycle with a couple of extra wheels thrown in.
It was only recently when some details about the car?s design began leaking out, that they began to get seriously concerned. In fact, Tata?s rivals have played right into its hands, keeping the project in the news since its very inception. It is difficult to say whether this was by sheer accident or simply a part of what has been a very impressively designed and orchestrated PR campaign. Either ways, the company could not have hoped for better publicity.
Much has already been written and talked about the Tata Nano and while it has been largely in the form of lavish praise, there has also been some criticism, principally from environmentalists, alarmed at its potential environmental impact. This, of course, suggests that both the acolytes and critics equally believe that the car will sell in millions. And that is exactly what Tata hopes will happen, which will more than double the size of India?s current passenger car market.
It?ll be interesting to see what strategy Tata adopts in promoting Nano. While it enjoys a tremendous first-mover advantage, others are bound to follow. Renault-Nissan has announced its plans to build a US $3000 car in partnership with Bajaj Auto. Tata?s corporate image at the moment could not be better, with Ratan Tata emerging as a global business leader. The launch of the Nano has been the jewel in the crown for the man leading the group that has already created global headlines with its acquisition of Corus and its near-certain purchase of the Jaguar and Rover marquees from Ford. But, establishing a great corporate brand image and successfully marketing a product is not exactly the same thing. This is perhaps where the real challenge lies.
Clearly, the target is to convert India?s two-wheeler buyers, a huge market helped to a great extent by the absence of a good, reliable public transportation system. If the Nano manages to upgrade 15 to 20% of Indian consumers entering the two-wheeler category annually, we could witness a potential 2 million Nanos on the road in the first year itself, a large proportion of which would be outside of India?s already jammed roads in its metros. Provided, of course, the car delivers on all the performance parameters that it is promising. The only other danger according to me, is if it gets positioned as the ?poor man?s car?.
Tata should take care not to overplay the price factor in its marketing and communications. It should be seen as the car of the future?small, safe, eco-friendly, low on running cost, easy to park and manoeuvre in India?s nightmarish urban traffic but above all, fun! The last thing the Nano needs is to become to auto-rickshaws, what the Indica is to taxis!
?The author is managing partner, Alchemist Brand Consulting
 
 