I just came across an amazing blog on marketing in India. It has several posts on marketing in Rural India, the challenges associated etc. http://rajeshaithal.blogspot.com/search?updated-min=2010-01-01T00%3A00%3A00-08%3A00&updated-max=2011-01-01T00%3A00%3A00-08%3A00&max-results=27
Check it out!
I love his post on why the Nano isn't selling as well as was anticipated. I agree with a couple of points. Namely, for most people in India, owning a car is the ultimate status symbol. A mark that the family has managed to upgrade from a 2 wheeler to a nice 4 wheeler. Why would that family spend on a Nano if a little more saving (or debt!) can bring an Alto? I'm sure Tata will get their marketing formula/positioning right, but the question itself brings up some interesting thoughts: Should some products always be premium priced? Or portray a premium image? Or is there another use for this car? E.g. small town deliveries? Is there a specific segment that would LOVE the nano? Then maybe Tata would not need to waste its marketing efforts else where!
Personally, February marked a month of amazing retail sales in Mumbai. The malls were full of large signs screaming 50%. I managed to pick up several garmets from phoren brands at bargain prices. Of course I was pleased as punch!
Check it out!
I love his post on why the Nano isn't selling as well as was anticipated. I agree with a couple of points. Namely, for most people in India, owning a car is the ultimate status symbol. A mark that the family has managed to upgrade from a 2 wheeler to a nice 4 wheeler. Why would that family spend on a Nano if a little more saving (or debt!) can bring an Alto? I'm sure Tata will get their marketing formula/positioning right, but the question itself brings up some interesting thoughts: Should some products always be premium priced? Or portray a premium image? Or is there another use for this car? E.g. small town deliveries? Is there a specific segment that would LOVE the nano? Then maybe Tata would not need to waste its marketing efforts else where!
Personally, February marked a month of amazing retail sales in Mumbai. The malls were full of large signs screaming 50%. I managed to pick up several garmets from phoren brands at bargain prices. Of course I was pleased as punch!
I had a strategy professor who talked about this issue. It's easier to sell products that are pure low-cost/no frills or premium-price/luxury than it is to sell "hybrid" products that land some place in the middle of that spectrum. It sounds like you think that Tata has done the wrong thing here, too, in trying to market the Nano to too broad a customer segment instead of focusing their efforts on a specific class of customer.
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