Thursday, January 10, 2008

Product tracking: TATA Nano.

Here we go!:
http://timesofindia.indiatimes.com/articleshowpics/2689238.cms

And more, if you can't get enough:
http://timesofindia.indiatimes.com/articleshow/2687930.cms

1. Would the family of 4 riding the motorcycle/ scooter switch to the TATA Nano?
2. Would those able to afford cars 3x the TATA Nano pricepoint switch to the car?
3. Would this car develop the market further than where it stands right now?

Over a decade ago, I found myself (by chance) sitting across an Ex MD of IFCI in the Rajdhani train. During our conversation, he mentioned that Pepsi had signed the document to enter India in his office. The talk then flowed to the struggle MNCs faced in India, and how their market estimation as well as consumer behavior analysis had been off target.

One reason for MNCs struggling in India, he pointed out, was that the Indian consumer was conservative and did not really believe in disposable products. i.e. consumers would evaluate alternatives and go for the cheapest option after factoring in TCO (Total Cost of Ownership). Consumers would pick products that lasted long, and could be fixed quickly by the local handyman, over jazzy products without as much ROI (return on investment).

A lot has changed since then- and that includes Pepsi becoming "the choice of the new generation". India's youth could be called the "liberalization youth"/ "satellite channel youth". As we learn more about the product, about the people buying (as well as not buying) this product, we are likely to find a huge indicator of India today; also specifically, an indicator of TATA Motors as a business, and of India's consumers.

Of course, I have not even touched upon the next step- going global.

What do you think?

P.S. The Part Hahaha Duh (a.k.a. Part II of this post on reaction to the car) is here:
http://randomjunkyramblings.blogspot.com/2008/01/product-tracking-tata-nano-part-hahaha.html

4 comments:

Anshul said...

A friend of mine was saying today, he's buying the Nano.. I didn't know why he was so excited about buying an mp3 player.. your post clarified things for me..

Amazing price.. not going to be so amazing for road congestion though.. mo' cars, mo' problems..

Nice blog touchup by the way.. funky..

Andy said...

So this is a car with No Power Steering,No Airbags,No electric windows ? I LOVE IT !.In fact I have a car with the same spec parked on my drive right now, but it is a 21 year old VW Scirocco Coupe, and it only cost me £200 :-)
It's very reliable,cheap to run and in September 2008 myself and 2 friends are raising money for 3 charities by driving it to North Africa ! Scirocco 2 Morocco .Google it for more details :-)

Roy said...

Hey Mohit,

This has been touted as one of automotive industry's defining moments. And it will most certainly change the course of motoring for the masses. A great time to launch the car. The mileage the TATA's got from the world stage is something that they wouldn't have imagined. Was watching the tube, and BBC, CNN, all were running simultaneous coverage.

Most importantly; all that mattered said this CAR COULD NOT BE done. they are now scrambling and Maruti in India has acknowledged that they are going to be hit with this launch.

Roy

Roy said...

Hey Mohit,

This has been touted as one of automotive industry's defining moments. And it will most certainly change the course of motoring for the masses. A great time to launch the car. The mileage the TATA's got from the world stage is something that they wouldn't have imagined. Was watching the tube, and BBC, CNN, all were running simultaneous coverage.

Most importantly; all that mattered said this CAR COULD NOT BE done. they are now scrambling and Maruti in India has acknowledged that they are going to be hit with this launch.

Roy