Nano thinking is zero Marketing thinking

In response to my post on Tata Nano's tactical fixes, this is what Ramesh had to say;

'The "fixes" aren't just tactical in nature, they are more strategic and fall in line with the brands philosophy. If we dive a little deeper there is an underlying insight to it - The new commercial, extended warranty, maintenance package, BTL etc. All these fixes speak the consumers language - they get close to the consumers actual needs. Nano will be a first car of many of its buyers,therefore assurance is what the fixes like extended warranty, maintenance package take care of Whereas, The communication on the other hand makes the car aspirational for the one's who would have not thought of buying a car, otherwise.

Backed by BTL - which will take care of trials and hands on experience of the TG with the brand. It's big Thumbs up for Tata Motors, for blending the rational and emotional messages very well.


My Take:

I completely agree that the Nano's 'altered' brand philosophy is getting them to speak the consumer's language. But I don't agree to the notion this was part of what the Nano guys had originally conjured up as their brand strategy. The hype (read, gargantuan amounts of publicity via mass media) the Nano rode blinded the Nano people to what was market reality. What was playing out was classic Marketing Myopia. The belief that the product in itself will do everything for consumers was near stupid. Of course, this is wisdom in hindsight, but it also points to the near bankruptcy in their Marketing understanding. This 'flaw' is easily explained because the solution the Nano presented, limited itself to being an engineering one. After all the product was the brainchild of engineers.

But consumers solutions aren't engineering feats. They are required to straddle Marketing territory in its entirety. That understanding dawned only because the Nano looked down the end of the barrel last November. The signs believe me, were already in place. Now kudos to the Nano team for having rethought the product as a Marketing solution. What followed were tactical fixes that touched all Marketing variables. The product was bettered, communication strengthened, distribution widened, and to top it all, a superb service proposition at a superb price-point was added.

Today's Nano isn't a result of grand strategic wisdom. Its one that's emerged out of the bruises of the marketplace, the latter prompting an altered value proposition.

And that I believe is what's 'tactical.

Comments

nikhil said…
for indian market i think positioning was best.

Later it failed not due to marketing myopia but due to some accidental cases.

now they dont have any other option but to come up with service warranty to restore consumer trust.

At starting if they would have touched all marketing points than cost would have been more that will lead to more price that indian consumer dont want from nano.

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