After reading a blog post by Candice Dela Cruz on the topic of social responsibility concerning the indian car manufacturer Tata Motors, I wanted to explain how their targeted customer segment has shifted and how their newer models (as opposed to the Nano they launched in 2009) depict their change in business model.
As a start, the model Nano has already been abandoned. Amidst the poor safety ratings, flimsy 30 horsepower the car amounts to and the lack of pretty much anything you’d want in a car, the company realized that such a car that gave practically no concern to peoples comfort and peace of mind has no part in the modern market. This car was intended to be sold to people living in rural areas – which turned out to be a mistake, as those demographics tended to care about safety just as much as anyone else, and even more cautious with their money. Tata didn’t even realize that their largest fanbase was in the middle class urban youth that supported them, and was focusing on the wrong customers when they delivered its Nano to first time buyers in rural areas.
To start the remedy, Tata has unveiled several new models such as the GenX nano, the Nano Twist and the Nano eMax. These cars have essentially implemented most of the things that the Nano was criticised for not having before – airbags, AC, radio etc. The company has even stepped up its game with the Nano eMax to start and target a different group – as it currently stands as India’s most fuel efficient car.
The company went down a dark path. However, I feel like to a certain extent, it has actually managed to redeem itself. It shows this by changing the catchphrase that used to define the company, “The world’s cheapest car” into a relevant and witty one to capture their middle class urban youth’s attention-“Thinking cheap is out and celebrating awesomeness”
Reference: http://www.theguardian.com/commentisfree/2014/feb/03/tata-nano-car-cheap-poor-safety-rating