Round Two: Repositioning The Tata Nano Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Introduction
The Tata motors company was founded by the Tata family in India. Company initially started manufacturing the trucks. But, on the other hand, the Indian market has huge demand for the cars,so Tata also started manufacturing cars. Meanwhile, in 20 years of the manufacturing cars it built good market share in the India. Furthermore, the company’s disruptive approach to the market, was a major contributing factor to the company’s success. Since, the company has good understanding of the market and its customers as well. Because, it identified a gap in the market for the cars, for those customers who could not afford the cars.
Indeed, the company’s idea was to attract the two-wheeler customers in the India. Because, around 30% population of the India was using two wheelers for the transportation purpose. So, among those 30% population, there were young students, labors and also those peoples having jobs. Since, they had to travel from the one area to another for the job on daily routine. Therefore, it was understood that this is huge gap in the market. Consequently, the company announced to manufacture one of the cheapest car of the world, which actually made headlines worldwide.
On the other hand, the company launched three different models varying in the services and accessories, such as the mileage, safety, speed, and the air condition and named it Nano. Meanwhile, after the launch of the three models of the cheapest cars. Company initially received around 200,000orders from the customers in the market. But, due to the huge demand, company could not meet with the market, so it announced to let customers extend their orders for another specified time, or collect their full refund. Meanwhile, among them 27% of the customers cancelled their orders.

Round Two Repositioning The Tata Nano Harvard Case Solution & Analysis
Meanwhile, company has many other problems that it has recorded regarding its cars. During the time, the company noticed sales decline, since July 2010. However, at two different occasions company increased the cost of cars, due to the sharp increase in the input costs. On the other hand, peoples also started to doubt on the reliability and safety of the car, due to an incident.In which, Nano was caught by fire completely after short circuit. But, the sales decline might be due to that incident, or due to the increased costs, and that company could not meet with the target market, and customers might face problems in financing the car. It is concern for the company that how should it approach the customers, and how should it reposition the Nano in the market.

The Cheapest car
India is the second largest populated country in the world. Meanwhile, the large population of the India lives below the poverty line.Also, large population of the India is middle-class and lower-middle classthat, could not support to purchase the car at once. Meanwhile, most of these middle-class families use the motor cycle/bike/ two-wheeler, as the mode of travel either for going to the office, for outing or for university. Similarly, a family of one husband, one wife, and two or three children could not travel on the two-wheeler. But, by taking the risk at their lives, families often traveled on the two-wheeler.........

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