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

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