Growing Pains of the Tata Nano

by: Scott Moore, Suresh Malladi

Publication Date: February 29, 2012
Length: 20 pages
Product ID#: 1-429-235

Core Disciplines: International Business, Marketing/Sales, Strategy & Management

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Teaching Note

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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.

Teaching Objectives

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