Tata Nano

Skylarked What sales goal would you recommend for the Data Anna? When Data Motors Ltd. Decided to create the Tattoo Anna they wanted to make the most fuel-efficient, smallest and cheapest car in the world. They had the advantage of already having the trust of consumers’ in India and being known for its commitment to ethics, by promising to improve the quality of life of its consumers. However, they were not the market leaders for the passenger vehicles with a market share of 16,45% against 46,07% for their competitor’s car, the Marti Suzuki India.

The Marti had placed itself in the market has everyone’s car. Whether you are young or old, single or married, with children or not, you could have the Marti. And it succeeded. Data Motors also faced the problem that most people in India drove two wheelers (76% of all vehicles sales were for motorcycles) since they were perceived as being more fuel efficient and had lower maintenance costs than cars. Also they allowed the driver to get anywhere faster than in a car due to the traffic.

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The first idea was to create a low cost passenger car.The company started working on the Anna and initially predicted production to be of 350. 000 cars in the first year. However, due to problems unrelated to the car production, they would only be able to initially produce 50,000 cars. The company decided to create a booking process; and if the orders exceeded the production’s capacity, a lottery would be held in order to determine who would receive the first Nanas.

Taking all this factors into account I would have to say that in the short term the company should target young students located in the urban areas, from middle class income.This way, they would face a smaller population, making it possible to sell all 50. 000 cars in the first year. However, in the long run, I believe that they should target the middle class as a whole. Although the car was initially designed for low income families, the price ended up having to be higher then what the company expected. Because of that they should adapt and take a strategy like its competitor’s car: the Marti, the people’s car.

This way, they could increase market share and even become the market leader. How will you position the Anna to achieve that goal?Specify each component of your positioning statement and explain why your recommended positioning is superior to other positioning strategies that might be considered. The company initially set two options on how to position the Anna. One would be “as a mean of family transport that was safer and more comfortable than a students”. Given this, I can easily identify three segments: the young middle class located in urban areas, the low income families located both on rural and urban areas and the “people’s car” that would include all middle class.The first one is a rowing segment (like described above) that has some level of education, most times even a degree and is either studying or entering their first Job. They live in the city and because of that they worry about the traffic and the fuel they’ll spend, since their available income isn’t much most of the times. Their parents are usually the buyers.

They also take into consideration the size of the car, since a smaller car is easier to park. Like every young generation they like what is new, innovative and trendy. And Anna is exactly that.Plus, it is a safe car that you drive anywhere, whether it is Just to o to a party in the city or if it is to go visit on holidays with your friends in the countryside. A car that their parents can trust (and most already do because of the relationship they already established with Data Motors). A good way to implement this strategy would be through the internet and the television.

Commercials that could really connect with the young, giving the feeling that they would be missing out by not buying the Anna. The company could market the Anna by posting videos on youth and by having a strong social network presence.The idea for the young consumers should be that if you want to have fun, the Anna is your only way of getting there.

This way, the company would be taking advantage of being the first mover and also making sure that their production restriction wouldn’t be a problem. As for the second segment, the low income families located on both rural and urban areas, it could be easily said that their main priority is money. That is the reason why they motorbikes instead of cars. The initial investment for the car plus the fuel they spend versus a motorbike is much higher.They are not concerned about innovation or safety. They Just want a mean of transportation. As for all the middle class, I would have to say that their main concern about a car would be its safety, fuel efficiency and more than that, the status that it brings.

Given that it is a growing segment that is expected to count as much as 19% of the population in India by 201 5 this is a much bigger market, with more consumers and so, a better chance of becoming the market leaders. Also, like described above, the percentage of income used for transportation is only expected to increase.And because middle class still worries about the price, especially in India where the absolute income is still low, Anna could be a perfect fit for it. The company should settle itself in the mind of the consumer as a symbol of success and a car that you easily park anywhere.

The only car with greatness inside. However, this would be the positioning for the future. I believe that these positioning statements, both for the short and long term, are superior to others because the company would be taking advantage of an emerging segment, while offering the consumer what he wants.