Direct connect
between Advertising and Sales in The Indian Market. But Perhaps, this is
also a Great time to Re-‘Reposition’ The Car. B&E does a Case
Summary
The company has also extended Nano’s availability from the 617 odd regular sales outlets (of the 248 odd dealerships) by setting up Special Nano Access Points (as of now about 210 across the country) where customers can experience, test-drive or even test-ride (if the consumer do not know driving) the car. Besides, the product is also being made available through nearly 151 Tata Authorised Service Centres, which help give consumers an enhanced touch-and-feel experience of the product. Currently, the company is exploring opportunities to appoint full-fledged dealerships only for the Tata Nano, in small towns. And to make up for its earlier marketing snafus, the company is now going beyond traditional selling strategies. Brilliantly, it has homed in on discounted retail formats like Big Bazaar for selling the Nano. “The response to the Nano has been overwhelming as both the prospective Nano buyers and Big Bazaar consumers share a lot of commonalities,” says Future Group’s Customer Strategy president Sandip Tarkas. Tata Motors now has plans to bring the Nano to Trent’s Westside retail chains (owned by Tatas).
Finally, Carl’s doing the Indians the way they should have been done at the start – offering discounts and promotional schemes. The company is offering a 4-year / 60,000 km manufacturer’s warranty, at no extra cost. In addition, new customers are also being offered optional comprehensive maintenance contract just at Rs.99 per month. There’s also an offer of full replacement of all Nano spare parts for an installment of Rs.4000 for a year. The company offers appropriate financing options that are a great help to customers wanting to graduate from two-wheelers to cars. Easy financing can be a great inducement to buying the Nano, whichever segment one is looking into.
Experts like Kevin Freiberg, co-author of Nanovation, a book that uses the Nano as an analogy to “teach the world to think big”, believe that the way forward for Nano is to help villagers in rural India and those at the bottom of the pyramid to get financing and make the process of buying their first car less intimidating. On its part, the company has set up financing arrangements with 29 banks and non-banking finance companies, with almost 90% assistance at “easy rates.” Additionally, Tata Motors Finance, a subsidiary of Tata Motors that helps finance their vehicles, helps process the loan of those applicants who might have unclear documentation (a rampant problem with customers in that segment) and that too in just 48 hours.
With its changed marketing strategy, Nano seems to have struck the right chord. The impact on sales is clearly visible over the past few months. In December 2010, Nano sales were over 5,700 and rose to 6,700 in January 2011. In February, the company sold a total of 8,262 Nanos, and the numbers for March stood at 8,707 units, which is very near to its all-time peak of 9,000 units sold in July last year. Tata is aiming to ramp up sales well into 2011, too, and hopes to boost production from March this year. Clearly, improved marketing strategy, brand positioning and advertising and improved supply chain management are now having a gainful impact on Nano’s sales and performance. Buoyed by its recent uptick in sales, the company aims to sell around 15,000 units in the coming months. This means an ambitious target of 1.8 lakh units in a year.
But that can be achieved if, and only if, CEO Carl does the final change that we believe needs to be undertaken now. The leitmotif of Nano’s campaign still personifies the rural/low-end/non-rich consumer. Once this positioning is changed into “Your first, second car,” there’s no telling how exponentially Tata Nano’s sales could zoom. And yes Carl, keep advertising – Indians forget, and too fast.
Read more......
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age WomanIIPM's Management Consulting Arm-Planman Consulting
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
The company has also extended Nano’s availability from the 617 odd regular sales outlets (of the 248 odd dealerships) by setting up Special Nano Access Points (as of now about 210 across the country) where customers can experience, test-drive or even test-ride (if the consumer do not know driving) the car. Besides, the product is also being made available through nearly 151 Tata Authorised Service Centres, which help give consumers an enhanced touch-and-feel experience of the product. Currently, the company is exploring opportunities to appoint full-fledged dealerships only for the Tata Nano, in small towns. And to make up for its earlier marketing snafus, the company is now going beyond traditional selling strategies. Brilliantly, it has homed in on discounted retail formats like Big Bazaar for selling the Nano. “The response to the Nano has been overwhelming as both the prospective Nano buyers and Big Bazaar consumers share a lot of commonalities,” says Future Group’s Customer Strategy president Sandip Tarkas. Tata Motors now has plans to bring the Nano to Trent’s Westside retail chains (owned by Tatas).
Finally, Carl’s doing the Indians the way they should have been done at the start – offering discounts and promotional schemes. The company is offering a 4-year / 60,000 km manufacturer’s warranty, at no extra cost. In addition, new customers are also being offered optional comprehensive maintenance contract just at Rs.99 per month. There’s also an offer of full replacement of all Nano spare parts for an installment of Rs.4000 for a year. The company offers appropriate financing options that are a great help to customers wanting to graduate from two-wheelers to cars. Easy financing can be a great inducement to buying the Nano, whichever segment one is looking into.
Experts like Kevin Freiberg, co-author of Nanovation, a book that uses the Nano as an analogy to “teach the world to think big”, believe that the way forward for Nano is to help villagers in rural India and those at the bottom of the pyramid to get financing and make the process of buying their first car less intimidating. On its part, the company has set up financing arrangements with 29 banks and non-banking finance companies, with almost 90% assistance at “easy rates.” Additionally, Tata Motors Finance, a subsidiary of Tata Motors that helps finance their vehicles, helps process the loan of those applicants who might have unclear documentation (a rampant problem with customers in that segment) and that too in just 48 hours.
With its changed marketing strategy, Nano seems to have struck the right chord. The impact on sales is clearly visible over the past few months. In December 2010, Nano sales were over 5,700 and rose to 6,700 in January 2011. In February, the company sold a total of 8,262 Nanos, and the numbers for March stood at 8,707 units, which is very near to its all-time peak of 9,000 units sold in July last year. Tata is aiming to ramp up sales well into 2011, too, and hopes to boost production from March this year. Clearly, improved marketing strategy, brand positioning and advertising and improved supply chain management are now having a gainful impact on Nano’s sales and performance. Buoyed by its recent uptick in sales, the company aims to sell around 15,000 units in the coming months. This means an ambitious target of 1.8 lakh units in a year.
But that can be achieved if, and only if, CEO Carl does the final change that we believe needs to be undertaken now. The leitmotif of Nano’s campaign still personifies the rural/low-end/non-rich consumer. Once this positioning is changed into “Your first, second car,” there’s no telling how exponentially Tata Nano’s sales could zoom. And yes Carl, keep advertising – Indians forget, and too fast.
Read more......
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age WomanIIPM's Management Consulting Arm-Planman Consulting
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
