Tuesday, January 03, 2012

And finally it seems they are getting it right....

When Tata Motors launched its so called "sub-one lakh" car - Nano, with so much of hype,  not too many expected a quick descent. But within an year post launch, market witnessed a gradual waning of demand, which was steadily doing justice to the nomenclature (nano), while compared to the mammoth expectations and projections. Though it's too early to write off such a path breaking offering, but cracks in the strategy and execution from the marketers side were evident to anybody who had been watching from outside.

To point out a singular reason for the slow down, I have nothing other than the gross under-estimation of the Indian customer by the brand. Whatever said and done, you cannot look down to the customer whom you would want to loosen their purse strings for your brand. But Nano did that... May not be intentional, but the initial communications from the brand conveyed the following perceptions to the intended customers.

a) Indian lower middle class families are suffering without a car and they would be just fine with box and four wheels for peanuts that they could spare. 
b) Tata Motors is doing a great favour to society by providing them a "cheap" car.
c) I am picking up a Nano because I cant afford a "better"one. 

May be the agency got communications speak in different language, the essence of every messaging was invariably around  the above three points. But then what was the reality?

Even if you have coughed up the money required to pick up the Nano, by stretching your family budget quite a bit, do you like to be seen as somebody who settle for a "cheap car" because you cant afford a better one?. A good second hand car was available - for much cheaper. 
Again, it was never a one lakh car, as most of us perceive. You have to shell out almost double of that  money to own one with fairly decent specs. So  for the people who gets turned on just with the "one lakh price tag", it became a terrible let down. So "the break through to fulfill a social obligation" has become nothing but just another corporate crap planted by the PR machine. Again, the quality... the reports were not as rosy as it intended to be. In short, the so called sure fire winning formula turned to a sour concoction in no time. I believe the marketers (who could be as usual a self-indulgent lot) may have only realized this when the dust settled.

Better late than never. The last quarter of 2011, showed a remarkable change in the outlook - especially from the packaging and communication. From a "cheap car" to a "young and peppy" avatar.. it's quite a positive transformation of all sorts. The marketers are doing a fabulous job in giving the little one a badly needed makeover. The cosmetic corrections on the product may also have connected in bringing it back into the consideration set... perhaps well in time. Hope what is under the hood have also got improved by gauging the pulse. I am sure the numbers are going to substantiate this as 2012 catches up.... I presume the launch of "autorikshaw with the fourth wheel" -  from Bajaj motors will also help to gather a better public opinion. 

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