Positioning the Tata Nano (A)

Case Solution

Alice M. Tybout, Natalie Fahey
Kellogg School of Management ()

The case focuses on the positioning of a new brand, the Tata Nano. The car was widely known as the cheapest car in the world at Rs. 1 lakh. Students should consider the gap between the final destination, the vast emerging middle class of Indian consumers, and the limited capacity and distribution available, when choosing a destination. You also have to choose between alternative competitive frameworks and the various differences that stand out. The case unfolds in two phases. The first decision point is in 2009, when the product is launched on the market. The second decision point is 18 months after production capacity has increased and some product safety issues have arisen.

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