1.

How has the brand positioning been influenced by decisions made during
the launch period ?
Earlier when Tata announced that it will be launching a car for the affordable
class people to bridge the gap between two-wheeler and four-wheelers. And
they stated that the car would be price at 1 lakh. This was to pull first time car
buyers. But from the initial bookings made for the Tata Nano, it was understood
that most people who booked the car were existing car owners who wanted a
second car. The pricing what TATA promised was not been able to achieve
because the cost of raw materials increased. And apart from the raw materials
there is Road-Tax, insurance which adds up to the cars price. And all this
reflecting on the On-road price at 1.5 lakhs which reduced the gap between
Nano and other entry level cars from other brands like Maruti’s Alto. In the case
of advertising , they advertised the car to be the “ cheapest car in the world” and
“lakhtakia” these both created a negative impact like When something is sold
for a cheaper price it would be of sub-standard quality.

2. How should the positioning of the nano be modified in light of the

information gained during the launch period?

During the time of the launch the majority of the bookings were made by
existing car owners. Whereas the bookings from the companies targeted
audience for Tata Nano was very less. The target audience of this car were
hesitant to buy the car because it would become a social symbol for being poor
as the car was advertised as the cheapest. They should have positioned the car
as a safest alternative to a two-wheeler instead of the Price-Positioning strategy.

3. What changes in distribution and promotion are required to support the

new recommended positioning?
To support the new positioning the product should be promoted based on the
safety features it is to offer over a two-wheeler. And in the case of distribution,
rural areas must be bought into the chain.