What Sales Goal for the Nano Will You Recommend
Autor: Zaheer Aslam • April 20, 2015 • Essay • 465 Words (2 Pages) • 2,585 Views
Marketing Management
Assignment # 02
Zaheer Aslam Tagar
ERP-10039
What sales goal for the Nano will you recommend?
Their present sales goal is 1000,000 cars per year. Whereas it seems very difficult to achieve in first year because of limited production capacity of 50,000 as well as competition by two wheelers and Maruti Suzuki. After 18-24 months production capacity will be increased to 350,000 and Yes Nano is better than it’s competitor Maruti 800. Nano is more fuel efficient and it’s relatively smaller size makes it more attractive to drive in traffic and parking is much more easier plus it’s amazing price of Rs. 1 Lac and when we compare it with two wheelers, it’s safer with more space and comfort. Inspite of these I think 1 Million is big number, Nano should set challenging but achievable sales target of around 700,000.
How will you position the Nano to achieve that goal?
Tata Nano positioned itself as the world cheapest car of Rs. 1 lac but it failed to achieve that target because of rising input costs that increased the market price around 15 % and customer has to pay extra for every luxuries features such as power steering, air bags, air conditioner and after sales service was also not good.
The car had some engineering faults, with engine heat, inefficient air-conditioning and suspect suspension.The upshot was a safe car whose safety was questioned; a poor people's car that poor people were not buying, and a cheap car that was not as cheap as it promised.
So according to me positioning should focus on newly 1. middle class people( According to reports they are around 55 million people); 2. children of upper middle & lower upper class and 3. New job hires who have joined the job market for last two years and need affordable conveyance for going to office that will save their time as well when compared to common passenger transportation. Positioning must also focus on it’s more comfort level and safety as compared to two wheelers and less costly around 50% than competitors with same features approximately.
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