NANO

Nano entering the Indian market

● Tata Motors rule the Automobile Industry of India with 60% of market share
● Inspired by the great number of Indian families with two-wheeled rather than four-wheeled
vehicles
●TATA Nano was launched with a tagline given “People’s Car” costing of Rs.1,00,000
●Overwhelming response for advance booking for the initial 1,00,000 cars
● Nano was expected to expand the nation’s market by 65%
●The target customers for Tata Nano were lower and middle income families, who aspire to
upgrade to 4- wheelers from being 2-wheeler users.
●Management at Tata Motor’s tried to focus on the price factor and developed “Price
Positioning Strategy” for Tata Nano
What went wrong?

● The car was positioned as a people’s car since it offers comfort and affordability to every
person
● In India price serves to signal quality i.e higher price serves to signal higher quality and
lower price serves to signal lower quality to the customer.
● Inadvertently Tata Nano got positioned as the “Poor Man’s Car” and “Cheap Car”
● Nano catching fire, which further weakened the trust for the brand ‘Nano’ .and people further
believed that low price is because of low quality.
● Tata Nano’s distribution system was not also consistent with its positioning strategy, Nano
did not have a large enough dealer network in the rural areas and smaller towns.
Strategies for revival
● Tata Nano, decided to create a new niche for itself in august 2013 , by managing to move
away from tag like the “world’s cheapest car to "smart city car“
● Tata Motor’s repositioned Tata Nano by boasting some intelligent features like power
steering option, improved interior and exterior of the car and improved fuel efficiency and
additional features like remote keyless entry, twin glove boxes.
● Tata Nano was re-engineered to fix the issues related to the fire and customers were offered
free safety upgrades
● Tata motors also placed a new and unconventional distribution system, Tata Motor’s set up
210 'F Class showrooms', each only about 500 sq ft in size and stocking just one car in
smaller towns, and hired 1,200 people to man them.
● Selling through Big Bazaar (which TATA did in later phases)
SWOT ANALYSIS
STRENGTHS

● Superb Performance in New Markets

● Strong distribution network
● Strong dealer community
● Successful track record of developing new products
● Highly skilled workforce through successful training and learning programs

Weakness

● Weak Marketing Policy

● Narrow Domestic Market
● Indifferent to Changes
● Safety standards are not maintained/ often ignored.
SWOT ANALYSIS

Opportunities

● Global Positioning
● Increasing Purchase Power of Indian People
● Opportunities for Merger and Acquisitions
● New environmental policies

THREATS

● Fuel Price
● Government Law on Environment
● Market competition
● Increasing Production Cost
Starbucks dominance in market
● Starbucks is a global American coffee company headquartered in Seattle, Washington
founded in 1971.
● World’s largest coffeehouse company Over 21,000 stores worldwide
● Product mix includes roasted and handcrafted premium priced coffees, tea, a variety of
fresh food items and other beverages.
● They also sell a variety of coffee and tea products and license their trademarks through
other channels such as licensed stores, grocery and national foodservice accounts
● The Starbucks experience 2nd Most Valuable Brand in Fast Food Industry Brand Value of $
25.8 Billion
● Starbucks created a third place between home and work where people can relax, enjoy a cup
of coffee and experience the inviting ambience.
● Starbucks is a disciplined innovator, and good management of its innovation timeline is one
of the primary reasons behind the Company’s success in generating consistently high levels
of same store sales.
Failure in Australia
● The company (Starbucks) entered Australian market in the year 2000.
● At the time when Starbucks entered Australia, McDonald’s, McCafe and Gloria Jeans had
already been established in the market.
● Starbucks opened its facilities in low-traffic areas. Moreover, they charged much more for
their coffee than their already established competitors
● Starbucks showed too much aggression by opening 90 stores across the Australian market
● Starbucks did not bother to customize their products or the processes for the new market.
● The company served sweeter coffee options than Australians preferred, all while charging
more than the local cafes.
● The company did not bother to apply any promotional strategy for their new products in the
market thus failing to understand the Australian consumer behavior and culture as Australia
has more than 235 different ethnic groups with proud traditions.
Suggestive measures

●Instead of rapidly entering a foreign territory on its own, Starbucks should have approached

experienced Australian investors to franchise a few outlets to test things out.

● Starbucks should have entered a new market using joint ventures and franchise modes

● Starbucks relied on its reputation only and did not make any effort of advertising or even

communicating its brand.

●Starbucks should have started with a total of 20 outlets, and only in major cities, such as
Sydney, Melbourne, Brisbane, and Perth — at least for the few years. The first step should have
been to build a loyal fan base.
●Starbucks should have organized several focus group interviews in Australia prior to its launch.
●By slowing its growth and trying to cater more to tourists, Starbucks may have found a recipe
for success in Australia.
SWOT ANALYSIS

Strengths
● Leading retailer and roaster for brand specialty coffee in the world
● Known for providing superior products and services•
● Consistent high quality of service•
● Limited number of strong competitors
● High market share and market growth
Weaknesses•
● High pricing because of the quality ingredients used
● Starbucks refuses to guarantee that milk, beverages, chocolate, ice cream, and baked goods
sold in the company’s stores are free of genetically- modified ingredients•
● Strong presence in the U.S. - more than three quarters of its cafes located in the domestic
market•
● In order to reduce business risk, expansion is needed Starbucks
SWOT ANALYSIS

Opportunities:
● Growth in Market Expansion like increase stores worldwide in Japan, China, India and
Pacific Rim nations.
● Co-branding with other manufacturers of food and drink.
● Could diverse their product not only in coffee
Threats:
● Starbucks prices are kind of expensive.
● Increase in market entry of many competitor and copy cat brands that may pose potential
threats.
● Exposed to rises in the cost of coffee and dairy products
Levi’s & Co.
● Levi Strauss & Co. is an American clothing company known worldwide for

its Levi's brand of denim jeans known for its quality products and brand value.

● World's largest brand name apparel manufacturer founded in 1853,San Francisco

by Levi Strauss

● There is no other company with a comparable global presence in the jeans and casual pants
markets.
● Its market-leading apparel products are sold under the Levi's®, Dockers® and Levi Strauss
Signature® brands.
● Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions:
○ Levi Strauss Americas (LSA), based in the San Francisco headquarters.
○ Levi Strauss Europe, Middle East and North Africa (LSEMA), based in Brussels.
○ Asia Pacific Division (APD), based in Singapore.
Where did it go wrong?

● Levi’s faced a problem that their jeans were increasingly regarded as ‘uncool’ in the
beginning of 1990s what lead to the fallen in sale
● Levi’s lacked innovation and stuck to what they knew, which morphed into offering
few product lines that also were out of style.
● By having a small range of product lines, Levi’s also failed to meet the needs of
different market segments.
● The poor connection with young customers in terms of rap music popularity growth and a
new subculture phenomenon development was the major reason
● After that, more and more young brands like Tommy Hilfiger, Calvin Klein and Gap entered
the market. Attacked from all sides by a surge of competitors, Levi’s lost its market share to
them in the casual pants classification.
● Declining of the US Jeans, LS&CO closed 58 plants and laid off more than a third of
its workforce.
Strategies
● Levi’s widened their product range and created more product lines.
● To prevent from being looked upon as a brand for old people, Levi’s put increased

effort into repositioning themselves in order to appeal to younger consumers.

● Part of the repositioning was to be seen as a trendy brand and follow what was in style,not
only when it came to fashion, but also trends in society.
● One of the company’s biggest success in recent times came when it created an entirely new
identity in the form of Dockers brand.
● The company launched a limited edition of 500 replicas , which were sold almost as soon as
they appeared in Levi’s special concept stores.
● Reinforced itself through tailored products for different customer bases.
● With the launch of a new product a supportive campaign was created .
● Altered the approach to massified promotion with the use of viral communication to
penetrate the youth culture.
SWOT ANALYSIS

Strengths

● Strong Portfolio of Brands

● Strong Global Presence
● Multiple distribution channels
● High employee involvement

Weakness

● Excess of ethics.
● Over dependence on few wholesale customers
● Lack of good developmental strategic plan.
● The duplicity of brand name:
SWOT ANALYSIS

Opportunities

● Growth in the US apparel market

● Improving Lifestyles in emerging nations
● Online retailing

Threats

● Competition
● Increasing Labour costs
● E-commerce allows new brands to enter
THANK YOU