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Published by: binzidd007 on Apr 12, 2014
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Re-positioning of Tata Nano
A qualitative a!"et !esea!#$ %esign
Vikas Sarangal (2012 PGP 437)
Re-positioning of Tata Nano Vi"as Sa!angal &'()'*+*,./
Page 1
Case background
Tata Nano was launched in 2009 and was positioned as “world’s smallest and cheapest car” and most fuel efficient which would be known as “people’s car” at Rs. 1 Lakh price
. The traditional segmentation was demographic based on factors such as age, gender and income
. The primary target segment was the middle class families who drive two wheelers but aspire to have a car
. Nano units sales never reached the expected value, in fact the monthly units sales numbers has been declining continuously (21,652 units were sold in September,2012 and only 9,291 units were sold in June, 2013)
. This all made the marketing team of Nano think if they have positioned Nano wrongly. On November, 30 the former chairman and the father of Nano, Mr Ratan Tata also admitted that positioning of Nano was wrong
. On August 22, 2013 the marketing team of Tata Nano declared the re-positioning of Tata Nano from cheap and affordable car to ‘smart city ride’
. To achieve this, the company has introduced features like power steering, improved interiors and fuel efficiency. They also plan to launch CNG version of Tata Nano in near future. The target segment is young car buyers. The new TV commercial titled ‘Celebrate Awesomeness with Tata Nano’ was launched in July, 2013, which highlighted the efforts of marketing team to target youth as their primary market
Research problem
The aim of this market research is to evaluate the perception that youth carry about Tata Nano and hence to evaluate the effectiveness of the re-positioning strategy. We also seek to determine if the new features and modifications offered by the company is of any value to young buyers.
Qualitative techniques to be used for obtaining data
Projective Technique (Cartoon test) 2)
Focus group discussion
Rationale for using above techniques
 Projective Technique (Cartoon test):
 The idea is that some people especially youth may hesitate to criticise their friends/classmates who own a Nano. With the help of cartoon tests they can project their own thoughts, attitudes and desires into the drawn characters. Test persons are therefore encouraged to express the thoughts and feelings that they otherwise might withhold. Further, test cartoons are interesting too work with and respondents will enjoy giving inputs. This
Re-positioning of Tata Nano Vi"as Sa!angal &'()'*+*,./
Page 2
part of the research will help us in gaining a basic understanding of how the respondents perceive the Tata Nano.
 Focus group discussion:
 Focused group discussion is used because our aim is to know the collective perception of a specific market segment (young car buyers). By encouraging a constructive interaction within the group, we will be able to find the appropriate insides about how the Tata Nano is perceived among the youth. After cartoon test FGD will allow us to dig in deep and will give us a collective perspective.
Profiles of respondents for the study
College goers:
 ,he primary set of respondent of the study would comprise of colle+e students who commute within city to +o to colle+e. ,he a+e of the respondent may vary from 18 years to 30 years. 2)
Recently joined job:
 ,he second set of respondents could be from the set of people who have recently oined ob and commute within city to +o to their office. ,he a+e of the respondents should not eceed 30 years.
Sample size
,he sample si'e would vary for both the 4roective techni5ue 6&artoon test) and 79.
Projective technique Cartoon !est"
: n &artoon test we can have as much as 200 to 300 respondents as described by 4hilipp roecelmann in the readin+.
#ocused group discussion:
 7or focus +roup discussion we would have 3 ;  different +roups each +roup comprisin+ of  to 12 participants. (s described by (nthony <. =nwue+bu'ie et al. more than  +roups would result in repetition of the findin+s and more than 12 participants will mae each of them uncomfortable in sharin+ their views. "oreover> natural of pre-eistin+ +roups should be used in 7ocus roup 9iscussion 6roup of friends> class mates of office collea+ues)
$uide for Projective !echniques Cartoon !est"
,here are three pictures in total. ,he faces of cartoons are intentionally left blan in order to not influence the participant?s proections. 4articipants should be informed that there are no wron+ or ri+ht answers. 4articipants should be told that in each picture cartoon characters are interactin+ and they have to +uess what should be the character that is left ban must be thinin+/sayin+. nstructions to be +iven before each picture are +iven below.
Picture %: &ere' on the right side there is a character (ho goes to college and on the right side his  parents are sitting)

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