Ratan Tata, CEO of Tata Motors, wants to introduce the world’s cheapest car, priced at $2,500, for the common Indian – the car is the Tata Nano and has been accordingly dubbed the “People’s Car”. But the introduction of the Nano has been ridden with difficulties. Coupled with poor sales and a recent crisis where several Nanos caught on fire, the Tata Nano has seen dismal sales. This case explores how Mr. Tata responds to this crisis by implementing a new marketing plan for the Nano and introducing a new version of the Nano, the Tata Pixel, for the European market.
Growing Pains of the Tata Nano
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After reading and discussing the material, students should:
- Analyze how management responds to a company crisis.
- Discuss how customers’ initial perceptions of a product can be difficult to change.
- Identify the strategy companies use to enter a new market