Skip to main content

What Ratan Tata is missing on Nano's positioning

Before I comment on Ratan Tata ruing the Nano being positioned as a cheap car, I must say the spirit behind the Nano is truly laudable. That Ratan wanted a car for a family that otherwise had to pile up and risk their very lives on a scooter is more than laudable, it epitomizes the soul of the socially conscious Tata group. A business group that's been a beacon of hope in India's socilaist-crony-capitalist business landscape.

Now to the Nano positioning statement from Ratan Tata.

The first lesson in either positioning or branding is, its not what you say your position or brand is that matters, its what the consumer opines. Plus, in deciphering positioning you have to understand how consumers form perceptions. Perception formation by consumers is responsible for mind-positions occupied by products and brands. Someone needs to tell the Tatas, everything that's stimuli as far as the Nano goes is material for perception formation. So price perceptions can decide Nano's position. So can the way the Nano looks, the manner in which is communicated via advertising, the method used in setting up channel partners, in displaying and selling it, all are stimuli that drive perceptions.

The Nano comes across as a cheap car not just on its price, but on the way it looks, the way it is sold, and so on. If Tata Nano wants to get back on track to attract consumer patronage, it will have to 'target' right, and change almost everything about itself, not at a core proposition level, but at an augmented one.

Meaning work on the design, on the communiques, and on the way you take it to market. I bet you'll then have a winner!


Unknown said…
may be position as a second car for daily chores or routine domestic tasks of middle income group

Popular posts from this blog

Situational Involvement of Consumers

There are two types of involvement that consumers have with products and services, Situational and Enduring. Situational involvement as the term suggests, occurs only in specificsituations whereas Enduring involvement is continuous and is more permanent in nature.

Decisions to buy umbrellas in India are driven by the onset of Indian monsoon. Monsoon rains arrived in India over the South Andaman Sea on May 10 and over the Kerala coast on May 28, three days ahead of schedule. But then, after a few days of rain, South India is witnessing a spate of dry weather. Temperatures are soaring in the north of India. The Umbrella companies in the state of Kerala are wishing for the skies to open up. So is the farming community and manufacturers of rural consumer products whose product sales depend totally on the farming community. The Met. department has deemed this dry spell as 'not unusual'.

India's monsoon rains have been static over the southern coast since last Tuesday because of a…

Prior Hypothesis Bias

Prior Hypothesis bias refers to the fact that decision makers who have strong prior beliefs about the relationship between two variables tend to make decisions on the basis of those beliefs, even when presented with the evidence that their beliefs are wrong. Moreover, they tend to use and seek information that is consistent with their prior beliefs, while ignoring information that contradicts these beliefs.

From a strategic perspective, a CEO who has a strong prior belief that a certain strategy makes sense might continue to pursue that strategy, despite evidence that it is inappropriate or failing.

Ref : Strategic Management : An Integrated Approach, 6e, Charles W L Hill, Gareth R Jones

Wearing Cuba means Walking Cuba

There's something ethereal about wearing 'Cuba'. Suddenly its the streets of Havana, smoke filled and lit by the groovin', more than the lights. The bars are packed to hilt and dreamy women seem to glide by. The feeling's beyond magical.

How did I get there?

Before I explain, I gotta tell you about the power of brands to take you places. Brands bring with them an ability to prompt you to conjure up the unreal. They can transform your reality into fantasy. And consumers are more than willing partners to brands as the drudgery they face in everyday life begs an injection of fantasy. Brands that operate in a zone of the unreal do the conjuring act as there's nothing else that consumers can call for, while making judgements. For instance, what should I be judging the lip paint on? Its colour and tone or its ability to turn me into a diva?

Cuba's a perfume. The moment I wear it, I am traipsing the streets of Havana. Its smoke filled bars I see. Its music I hear and…