10/2/2014 Tata Motors' 5 key strategies to lure youngsters towards Nano Twist - Economic Times

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Tata Motors' 5 key strategies to lure
youngsters towards Nano Twist
Li j ee Phi l i p, ET Bureau Jan 19, 2014, 07.00AM IST
From peak sales of over 27,000 units in the January-March
2012 quarter to under 4,000 in the three months to
December 2013, Tata Motors' Nano hasn't quite lived up to
the hype and expectations built up since its launch in mid-
2009. Former Tata group chairman Ratan Tata now
chairman emeritus recently said the "cheap car" image
had hampered the Nano's progress, and earlier this week
Tata Motors took one of its first steps to erase that
"stigma".
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It launched Nano Twist, a 'smart city car' with power steering, improved beige interiors, a new instrument
cluster with driver information system and a redesigned gearshift console. Goodbye Rs 1 lakh car, or at least
that perception this variant costs just under Rs 2.36 lakh (ex-Delhi showroom).
"With the new Nano Twist, and the Nano eMax a few months back, we have begun this journey of a Nano
portfolio that stands true to its brand essence: of a youthful, exciting car offering great value but, at the same
time, builds in a different set of features to suit differing customer needs," says Tata Motors managing
director Karl Slym.
The attempt over the past year has been to attract youngsters. In 2012, only a fifth of the buyers fell in the
age bracket of 18-34; that share more than doubled to 55% in 2013, although it hasn't translated into
increased sales. "The Nano needs to be aspirational rather than spartanly utilitarian," says Ankush Arora,
senior vice-president and head commercial, passenger vehicle business unit, Tata Motors. Here are the five
prongs of the strategy to reverse the sales downtrend:
Focus on youth: To build a youthful and aspirational value around the brand, Tata Motors through its
'awesomeness' branding and marketing campaign worked with fashion designer Masaba Gupta on the launch
of the Twist. The makeover campaign is an attempt to get youngsters to look at the Nano as a fashion
accessory. "Young consumers want complete accessorisation in the car like alloy wheels, different interiors,
spoilers and graphic designs," explains Arora. The company promises more on-ground activities and
showcases at colleges to woo the youth.
Fresh positioning: From a people's car and the world's cheapest, the Nano is now positioned as the smart
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10/2/2014 Tata Motors' 5 key strategies to lure youngsters towards Nano Twist - Economic Times
http://articles.economictimes.indiatimes.com/2014-01-19/news/46347209_1_tata-motors-smart-city-car-karl-slym 2/3
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city car for young achievers. Arora says while the perception of a cheap car has still not gone away, the
profile of the consumer has tremendously improved along with the features in the car. Based on market
research, Tata Motors has segmented potential customers into first-time buyers, those looking for a
replacement or an additional car and others who want more features and performance. Near-term plans
include a variant with automated transmission to strengthen the smart city car positioning.
"With all the significant product changes, we have a really easy-todrive car, great to manoeuvre, with a
distinct individuality and colour and offering what no car can in this price range a great style, entertainment
and music, industry-leading power steering and more," says Slym. Adds Rakesh Batra, partner, national
leader, automotive sector, Ernst & Young: "The repositioning will make the product cater to a larger number
of customer segments. If the value proposition is right, it should lift volumes."
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Communication for a consumer connect: The idea is to give the brand a far more emotive personality and
the new advertisement campaign of 'awesomeness' is in that direction. The campaign has electronic dance
music DJ Akshay Sarin, celebrity dancer Lauren Gottleib, and professional golfer Neha Tripathi to celebrate
how these young achievers 'live life on their own terms'. These young achievers will help create an emotional
connect with the target buyer. Consumers will get opportunities to interact online or on-ground with the young
achievers, leading to attachment to the brand, reckons Arora.
Revamping distribution and reach: The new dealer identity will make the consumer experience more
exciting. The dealerships will have better displays, video walls, trained workforce to reinforce the smart city car
image and all content will be centrally controlled. There are 95 standalone Nano dealerships and the company
has no plans to increase the number this year.
Changed pricing: At its launch, much was made of the Rs 1 lakh price tag. The price points have been
redefined and the new variants of Nano are expected to priced in the range of Rs 1.75 lakh to Rs 3.25 lakh. "A
consumer is looking for the right value equation, a full package, and not a cheap car," explains Arora. He adds
that from the three trim levels, 60% of the Nano sales were from the power steering and AC variant. Now,
armed with five trim levels, the company plans to offer four engine options.
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10/2/2014 Tata Motors' 5 key strategies to lure youngsters towards Nano Twist - Economic Times
http://articles.economictimes.indiatimes.com/2014-01-19/news/46347209_1_tata-motors-smart-city-car-karl-slym 3/3
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Readers' opinions (94)
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22 Jan, 2014 12:36 AM
JKVR SETTY (MYSOORU)
Hope it will be good.
20 Jan, 2014 09:09 PM
Kittu (Mumbai)
The Nano is an experimental vehicle used as a learning ground for fresh engineers and new senior
management guys to hone their skills. Tatas (not necessarily Tata Motors) has got an interest free loan of INR
7000 crores from govt. of Gujarat for the Nano project. The interest cost saving is about INR 800 crores per
annum on this. Even if it sells 36000 Nanos per year for free it does not matter to Tata Motors. Who cares if it's a
twist or a turn.
20 Jan, 2014 06:37 PM
Anjaneyulu Chall (guntur)
Hi i bought the Tata Nano LX 2011 model in December, 2011 and for the last 2 years i have travelled arount
27800 km and the mileage i am getting on road is 22.5 kmpl and in city it is 18 kmpl and recently i have visited
Goa on my nano from Guntur to Goa (arount 1900 km up and down) and till now i did not face any problems and
it is the best hatch model in INDIA with best economy mileage and i am the happy cumtomer of Tatas and do not
believe the comments quoted by the foolish people and they do not know the reality. simply making the
comments is easy but the reality is different. If you are an indian and middle class man, definetely you can buy a
Tata Nano confidently without bothering of prestige issue. it is the best car in small car range and i am the one
who enjoys it completely.
20 Jan, 2014 03:43 PM
Ivan Bigger (Gamburtsev Province)
At 3.25 lakh, I hope they give a free Alto with it...
26 Jan, 2014 10:37 AM
VINIT (MUMBAI) replies to Kittu
GOOD BLUFF. GUJARAT GOVT HAS NEVER GIVEN 7K CR SOFT LOAN TO TATAMOTORS. CHK
FACTS BEFORE COMMMENTING/
20 Jan, 2014 03:08 PM
Pravin (Trivandrum)
I own a 2012 LXi Model Nano , which I bought after exchanging my 2001 Indica diesel car . I am surprised that
Tata motors hasnt got the basics right all these years . The engine failed in both diesel Indica and petrol Nano. I
realised the Nano engine failure when I took it to the TATA Motors authorised service centre , Nano has run only
16,000 odd kms . Now they have come out with new model , Twist , the engine remains the same . Think twise
before opting for Nano . Really disappointed that even petrol engine doesn't work good for Tata Nano .
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