Values-Based Product Innovation – The Case of Tata Nano
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TEACHING MATERIALS
Blue ocean pedagogical materials, used in nearly 3,000 universities and in almost every country in the world, go beyond the standard case-based method. Our multimedia cases and interactive exercises are designed to help you build a deeper understanding of key blue ocean concepts, from blue ocean strategy to nondisruptive creation, developed by world-renowned professors Chan Kim and Renée Mauborgne . Currently, with over 20 Harvard bestselling cases .
CASES BY TOPIC
TEACHING GUIDE
Tata Nano’s Execution Failure: How the People’s Car Failed to Reshape the Auto Industry and Create New Growth
Author(s): KIM, W. Chan, MAUBORGNE, Renée, BONG, Robert, JI, Mi
Case study trailer
This case and the accompanying three-part theory-based movie describe Tata Motors’ strategic move to create and launch the Tata Nano and the successes and setbacks of the Tata Nano team in actualizing this strategic move. The case and part-one of theory-based video first review how the Tata Nano was conceived based on noncustomer insights from an alternative industry – the two-wheeler market and how a strategic price was set against alternatives to capture the mass of target buyers. The case and part-two of the theory-based movie then show how the Tata Nano team complemented its compelling value proposition with a viable profit proposition by pursuing target costing to deliver exceptional buyer utility at the strategic price set. Finally, the case and part-three of theory-based movie examine different components of the Tata Nano’s people proposition to identify the major causes of the setback it experienced in executing the strategic move, illustrating the importance of matching strong value and profit propositions with an equally compelling people proposition to ensure the successful execution of a blue ocean strategy. The accompanying three-part theory-based movie, available in the Educators’ Space , which longitudinally tracks the Tata Nano strategic move from conception to execution, is based on first-hand research and face-to-face interviews. A comprehensive teaching note also accompanies the case.
Pedagogical objectives:
- To demonstrate how Tata Nano reconstructed market boundaries across alternative industries and created a commercially viable blue ocean opportunity by following the right strategic sequence.
- To highlight the importance of matching value and profit propositions with an equally strong people proposition in ensuring the successful execution of a blue ocean strategy.
- To review major blue ocean strategy concepts, frameworks and tools in the course of analyzing the Tata Nano strategic move.
English: HBSP | Case Centre | INSEAD
Chinese: HBSP | Case Centre | INSEAD
Teaching Note
HBSP | Case Centre | INSEAD
English, Chinese: Available to download for free in the Educators’ Space
Lecture Slides
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POSITIONING IS INEVITABLE –A CASE STUDY OF TATA NANO
Related Papers
Kenneth Bo Nielsen
When the Indian car manufacturer Tata Motors launched its new ‘people’s car’ in 2008 it was widely predicted to revolutionise automobility in India. Yet seven years after the launch, the car has barely made an impact on the Indian car market and is widely regarded as a failure. This article offers a detailed study of the rise and fall of India’s ‘people’s car’. Based on a mapping of the changing popular representations and symbolic imaginaries that attach to the car as a means to mobility and an object of identity and social status, we suggest that the car failed neither because it was mediocre, nor because it remained economically out of reach for most Indians. Rather, we argue that its insertion into the lower ranks of a powerful status hierarchy of identity-defining objects precluded it from adequately tapping into new and hegemonic forms of consumer aspiration in ‘New India’.
Dr N H MULLICK
The case focuses on the debacle of Fiat in India after its recent joint venture pertaining to dealership and servicing ended. The future is unclear and is the topic for debate. The case will help students to understand the reasons for the failure of Fiat in India and to be able to connect the case with the marketing concepts, especially those pertaining to distribution channels.
Gautham Jeevandas
Ambarish Jambhorkar
-The case is focused on the learning from brands like Ford Edsel and Tata Nano. The two different products in two different markets (USA and India) at an interval of half a century, yet the learning is same. The central message of the case study is impact of Customer Expectation from the product. The case analyzes detailed history of Ford Edsel – from research of ‘Name’ to brand withdrawal and Tata Nano – from conceptualization of product to consumer reviews. After analysis, the article develops and explains a new concept of brand suffocation. Brand suffocation is a situation when brands fail not because of lack of market potential but due to mismatch in core expectation and delivery. To explain brand suffocation, the case explains Indian market potential for four wheelers with Crisil report – a holding company of Standard’s and Poor. The business sense is analyzed based on C.K.Prahalad’s principle of Bottom of Pyramid (BoP). And, the enthusiasm of major automobile companies for launching a small economic car for BoP. Despite all the favorable conditions, Tata Nano, the most applaud car failed. The price sensitive Indian customers still buying cars with almost double the price of Nano. The article gives clarity to product developers on identifying the core expectation and mistakes committed by Edsel & Nano. The association of three circles (outer, middle and inner) brings in clarity for the product developers about what to develop in a product in its product life cycle. The article highlights how drifting from any of the circles of benefit, disappoints customer in their expectation. Customer disappointment ultimately leads to the product suffocation despite huge market potential.
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IMAGES
COMMENTS
The case focuses on how the initial strategies for launching and positioning Tata Nano as a "People's Car" backfired and how management recognized its shortcomings and mistakes that led to the ...
T his case tracks Tata Nano, one of the favourite projects of Ratan Tata, Chairman of the $100 Billion Tata Group of India. Conceptualized initially as the people's car by Tata Motors, it was unveiled in the prestigious Delhi Auto Expo in 2008. It was the first ₹100,000 car globally, showcasing India's design, manufacturing and ...
Assignment on Tata Nano (A Case Study on Tata Nano) Hossain Arif See Full PDF Download PDF "The Development of the Concept of the Natural Energies," Phronema 38 (2023), 21-46.
The basic assumption was that Tata Nano solved their functional need of safe transportation and aspiration of becoming a car owner, which was possibly correct. However, in practice, Nano was functionally a transportation solution, but the car for this customer segment had to meet their aspirational requirement.
PDF | Students identify promotion, price, place, segment, targeting, and positioning for marketing "the world's cheapest car." This case is effective... | Find, read and cite all the research ...
The Tata Nano was a compact city car manufactured and marketed by Indian automaker Tata Motors. over a single generation, primaril y in India, as an inexpensive rear-engined hatchback intended to ...
1 CASE STUDY: TATA NANO Akanksha Verma 1 , Abdularahman Alenezi 2 , Abdelaziz Alkandari 3 , Amira 4 ABES Engineering College, AKTU University 1 Kuwait University 2 Kuwait University 3 Kuwait University 4 ABSTRACT The TATA NANO was a compact city car manufactured and marketed by Indian Automaker TATA MOTORS over a single generation, primarily in INDIA, as an inexpensive rear-engine hatchback ...
Case Study on TATA Nano - Free download as PDF File (.pdf), Text File (.txt) or read online for free. Ratan Tata's vision for the Tata Nano was to create an affordable car for lower- and middle-income families in India.
This case analyses Tata Motors' strategic move to create and launch the Tata Nano, exploring the factors behind the project's earlier success and the reasons for its execution failure. It illustrates the importance of having a strong and aligned set of value, profit and people propositions in order to create and capture a blue ocean. The teaching note reviews how Tata Nano created its ...
Design/methodology/approach- A hybrid methodology comprising of a case study on the 2200 USD (equivalent to INR 1,00,000) car Tata Nano and supported with a quantitative survey on a random sample of prospective Nano customers has been deployed. The qualitative case study helps to understand the macro picture on how innovation helped create new market for the masses. The quantitative survey ...
She has published research papers/case studies in Journal of Marketing Analytics and various other journals for institutions such as Richard Ivey School of Business and Emerald Group Publishing Limited. e-mail: [email protected] 187 f. Nano Vikalpa. Tata Nano: Case of Repositioning.
Tata_Nano_Case_Study - Free download as PDF File (.pdf), Text File (.txt) or read online for free. The document discusses the launch of the Tata Nano, the world's cheapest car, by Tata Motors in India. It notes that the idea for the Nano came from Tata chairman Ratan Tata witnessing a family of four crammed dangerously onto a two-wheeler in the rain. Tata aimed to provide an affordable and ...
The case o f the Tata Nano allows elaborating upon the potentials. and risks of values-based innovation through a longitudinal analysis of three. stages process: 1) D evelopment guided by the top ...
Case study on TATA Nano - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. Tata Motors adopted a cost leadership strategy for its Nano car to establish a competitive advantage through low costs. This allowed Nano to have the lowest price in the emerging market. However, Tata faced problems during production like land acquisition issues that ...
Tata Motors Limited Tata Motors Limited, India's largest automobile company, was established in 1945 as Tata Engineering and Locomotive Company (Tata Motors, 2015a; Times of India, 2003). The vision of Tata Motors was to be the most admired company among all stakeholders for the experiences and value they enjoy from being with them.
Case Study on Tata Nano - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. Tata Nano was launched as India's cheapest car aimed at making car ownership accessible for low-income families.
Summary This case and the accompanying three-part theory-based movie describe Tata Motors' strategic move to create and launch the Tata Nano and the successes and setbacks of the Tata Nano team in actualizing this strategic move. The case and part-one of theory-based video first review how the Tata Nano was conceived based on noncustomer insights from an alternative industry - the two ...
The central message of the case study is impact of Customer Expectation from the product. The case analyzes detailed history of Ford Edsel - from research of 'Name' to brand withdrawal and Tata Nano - from conceptualization of product to consumer reviews. After analysis, the article develops and explains a new concept of brand suffocation.
T his case tracks Tata Nano, one of the favourite projects of Ratan Tata, Chairman of the $100 Billion Tata Group of India. Conceptualized initially as the people's car by Tata Motors, it was unveiled in the prestigious Delhi Auto Expo in 2008. It was the first ₹100,000 car globally, showcasing India's design, manufacturing and ...
It is comprised of more than a hundred operating companies, including both listed and unlisted companies. Headquartered in Mumbai, India, prominent group companies included Tata Consultancy Services, Tata Steel, Tata Motors, Tata Chemicals, Tata Global Beverages, Tata Tele Services, Titan Industries, Tata Communication and Taj Hotels.
The case explores how Tata Motors, India's largest automobile company, developed the Nano, the world's cheapest car. The case focuses on the translation of Ratan Tata's (Chairman of Tata Motors) vision of a safe affordable car for the masses by Ravi Kant, Managing Director of Tata Motors into the Nano Project. The case raises questions around breaking the price - quality barrier and changing ...
CASE STUDY-Tata Nano - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. Tata Motors introduced the Tata Nano in 2008 as the world's cheapest car, targeting lower- and middle-income families in India. Initially priced around 1 lakh rupees, costs increased in 2008 due to higher materials costs. While the Nano received several awards and was ...