Market Penetration

To revive the Nano, flaws discovered during the market entry phase were addressed in the
third phase of market penetration. Product development and positioning, as well as
communication and distribution, were restructured to fit the needs of the prospective
target group of high achievers.
CHANGE
Repositioning of the Nano led to replacing the initially top-down approach prescribed
values of safety and affordability with the bottom-up approach.
The Nano has been re-positioned as a stylish, sophisticated, smart trendy and modern-city
car. The target market was shifted to scooter families and toward the younger generation,
including college students, youngsters, women, first-time buyers, and those searching for
an additional vehicle.
The exterior design of the Nano, as well as new upgrade versions with improved
functionality, were offered to redefine its aesthetic value and maintain the Nano's
attractiveness. All safety issues were addressed, and efforts were made to dispel the image
of a "cheap car" by addressing the stigma of poor quality.
CHANGE
To encourage a wider adoption of the Nano, more cost-effective solutions were developed.
The Nano CNG EMAX, for example, was not only environmentally friendly with the lowest
CO2 emissions but also the most fuel-efficient car in India.
New customer relations were built by offering various schemes such as Tata Nano financial
schemes, where customers could receive loans up to 90 percent.
New customer touchpoints and distribution channels were introduced through new points
of sales and access in small towns and rural areas.
Furthermore, new partners like the value retailer “Big Bazaar” displayed a Nano in every
one of their 70 outlets and facilitated purchasing decisions and increase in sales.
In this third phase, the values-based approach was used to consider the consumer values of
the new target groups, resulting in new measures of product differentiation and
communication.
OVER TO YOU, DIVYANSH