Assignment-1

Roll No. Name

S004 ALOK KUMAR
S010 APOORV SARVESH
S035 JAIBIHARI SINGH
S067 PRATYUSH KUMAR
S084 SHAILY GOGIA
S092 SUMANA BISWAS
S104 VIKASH KUMAR JHA
Date: 26th July 2023

Question:
Take a failed product or brand and identify factors that caused it. Develop a list of factors that may operate to
fail companies, products and brands. You may use ChatGpt. Assignment should be printed about two or three
pages. It’s a group assignment.

Answer:
Name of the product: TATA NANO
Brand overview
Tata motors is brand part of the USD128 billion Tata group founded by Jamsetji Tata in 1868, Tata Motors is
among the world’s leading manufacturers of automobiles. It believes in ‘Connecting aspirations’, by offering
innovative mobility solutions that are in line with customers' aspirations. They are India's largest automobile
manufacturer, and continues to take the lead in shaping the Indian commercial vehicle landscape.
Product overview
The Tata Nano was a compact city car manufactured by Tata Motors. It was introduced in 2009 as an
affordable and compact car aimed at providing an economical transportation solution for the masses in India.
The Nano was positioned as the "people's car" and garnered significant attention for its low price and small
size. Following are some salient features of Tata Nano,
 Compact Design: The Tata Nano had a compact design with a length of approximately 3.1 meters,
making it one of the smallest cars on the road. Its small size made it suitable for navigating through
congested city traffic and tight parking spaces.
 Engine and Performance: The Nano was powered by a rear-mounted 624 cc, two-cylinder petrol
engine, offering a maximum power output of around 38 horsepower. While not built for high-speed
performance, the car was designed to be fuel-efficient and provide adequate power for city driving.
 Spacious Interior: Despite its small size, the Nano boasted a surprisingly spacious interior with enough
room to comfortably seat four passengers.
 Fuel Efficiency: One of the key selling points of the Tata Nano was its fuel efficiency, providing cost-
effective transportation for budget-conscious consumers.
 Basic Features: The Nano focused on simplicity, offering basic features such as manual transmission,
manual windows, and no power steering in its initial models to keep the cost low.
 Safety Features: The Nano included some basic safety features such as seat belts, crumple zones, and
intrusion-resistant doors. However, concerns were raised about its safety after a few reported
incidents of fire in some early models.
Tata Motors marketed the Nano as an affordable and accessible car, emphasizing its low price point as a game-
changer in the automotive industry. During its launch, the Nano's starting price was set to be around INR
100,000 (approximately $1,500), making it one of the most inexpensive cars available at the time.
Despite initial enthusiasm and interest, the Tata Nano faced several challenges. As a result of these challenges
and declining sales, Tata Motors eventually ceased the production of the Tata Nano in 2019. Despite its
discontinuation, the Nano remains a significant milestone in the Indian automotive industry and is
remembered as a bold attempt to provide affordable mobility to the masses.

MBAEX 8105 Marketing Management Page:1

Assignment-1
Roll No. Name
S004 ALOK KUMAR
S010 APOORV SARVESH
S035 JAIBIHARI SINGH
S067 PRATYUSH KUMAR
S084 SHAILY GOGIA
S092 SUMANA BISWAS
S104 VIKASH KUMAR JHA
Date: 26th July 2023

Key Reasons for failure

Few key reasons to failure of Tata Nano are discussed as following,
1. Initial Production and Supply Challenges: Initially, Tata faced production and supply chain challenges,
which resulted in limited availability of the car. Shifting of the Nano car plant from Singur, West Bengal
to Sanand, Gujarat increased initial operation cost many times with intangible loss of missing delivery
timelines and trust of customers, leading to around 75% of booking cancellation. This affected the
overall customer experience and slowed down the sales momentum. On subsequent years of
production, raw materials prices like steel were hiked coupled with global slowdown (2008-11) which
made a challenging task for the company to keep promise of ₹1lakh price limit

2. Perception as "Cheap" Car: While the Tata Nano aimed to provide an affordable option for middle-
class families, it inadvertently earned a reputation as a "cheap" car. This perception affected its
desirability, as consumers often associate higher price with better quality and features.

3. Marketing and Branding: Tata Nano's marketing and positioning strategies were not able to overcome
the perception of the car as merely a budget option. The messaging and branding failed to resonate
with consumers who aspired to own a car with more status and features.

4. Competition: While Tata Nano was positioned as an affordable car, it faced competition from used
cars, two-wheelers, and other entry-level hatchbacks in the Indian market. Consumers had various
options to choose from at similar price points.

5. Lack of Differentiation: The Tata Nano's low price was its main selling point, but it lacked significant
differentiation in terms of design, features, and performance compared to other cars in the market.

6. Limited After-Sales Service Network: The availability of after-sales service and spare parts for the Tata
Nano was initially limited in certain regions, affecting the overall ownership experience.

7. Economic and Regulatory Factors: Economic downturns and changes in tax regulations impacted car
sales in India during the time of the Tata Nano's launch, affecting its market performance.

Overall, a combination of quality issues, branding challenges, intense competition, and changing consumer
preferences contributed to the failure of the Tata Nano Despite its initial promise, the car could not sustain its
market position and sales over time.

MBAEX 8105 Marketing Management Page:2

Assignment-1
Roll No. Name
S004 ALOK KUMAR
S010 APOORV SARVESH
S035 JAIBIHARI SINGH
S067 PRATYUSH KUMAR
S084 SHAILY GOGIA
S092 SUMANA BISWAS
S104 VIKASH KUMAR JHA
Date: 26th July 2023

Factors that can contribute to the failure of companies, products, and brands:
 Lack of Market Demand: If there is insufficient or declining demand for a product or service, the
company may struggle to generate sales and sustain profitability.
 Poor Market Research: Inadequate or inaccurate market research can lead to misjudgment of
consumer preferences and needs, resulting in products that fail to meet customer expectations.
 Intense Competition: Fierce competition from rival companies can erode market share and reduce the
viability of a company's products or brands.
 Ineffective Marketing and Branding: Poorly executed marketing strategies and branding efforts can
fail to resonate with the target audience and fail to create a strong brand image.
 Quality and Reliability Issues: If products have consistent quality problems or reliability issues,
consumer trust can be damaged, leading to decreased sales and brand reputation.
 Lack of Innovation: Failure to innovate and adapt to changing market trends can lead to stagnation,
making the company or product less relevant to consumers.
 Financial Mismanagement: Poor financial planning, excessive debt, and inadequate cash flow
management can lead to financial difficulties and ultimately business failure.
 Leadership and Management Problems: Ineffective leadership, poor decision-making, and internal
conflicts can disrupt company operations and hinder growth.
 Regulatory and Legal Challenges: Companies that do not comply with relevant regulations or face
legal issues may suffer significant reputational damage and financial penalties.
 Economic Downturns: Economic recessions or fluctuations can reduce consumer spending, impacting
sales and revenue.
 Technological Obsolescence: Failing to keep up with technological advancements can render products
or services obsolete in the market.
 Supply Chain Disruptions: Disruptions in the supply chain, such as shortages of raw materials or
logistical challenges, can impact production and delivery.
 Lack of Customer Support: Inadequate customer service and support can lead to customer
dissatisfaction and loss of loyalty.
 Cultural and Societal Shifts: Changes in societal norms and cultural trends can affect consumer
preferences and lead to the decline of certain products or brands.
 Negative Publicity and Crisis Management: Public relations crises, scandals, or negative publicity can
severely damage a brand's reputation and erode consumer trust.
 Overexpansion: Rapid and unsustainable expansion efforts can strain resources and lead to
operational inefficiencies.
 Failure to Adapt to Globalization: Inability to adapt to the global market and diverse cultural contexts
can hinder international expansion.
 Ignoring Environmental and Social Responsibility: Failure to address environmental sustainability or
social responsibility concerns can lead to reputational damage and consumer backlash.

It is important for businesses to identify and address these factors proactively to increase their chances of
success and longevity in the market. Regular evaluation, strategic planning, and adaptability are essential to
navigate potential challenges and avoid failure.

MBAEX 8105 Marketing Management Page:3