Could There Ever Be a Market for the Nano?

3 Responses to “Could There Ever Be a Market for the Nano?”

1. Mickey Says: June 8th, 2009 at 12:26 pm

   The marketing of this vehicle will make or break the success. Think about this, MINI Coopers are a status symbol due the close association with BMW. The Smart Cart became all the rage when gas was cost prohibitive to run SUVs and V8 sports cars.

   The bottom line is that success is built on brand recognition. If you/your brand can distinguish yourself from a crowded pack of products that basically offer the same thing then sales will increase and success will coincide. But if you struggle to do that, the $2300 price tag on a Tata Nano may not be as attractive.

   Think about the Ipod. There are thousands of products that hold music. Some may even do it better but Apple has had resurgence as a company due to redefining their brand. It probably doesn’t hurt to be playing in the ever-changing world of consumption electronics. But this holds true regardless of product. Before 10yrs ago, Apple probably didn’t advertise on TV. If they did, it wasn’t memorable.

   The same can be said for GEICO. They aren’t the biggest or the best. In fact, in some instances they get beat on price which is their crutch. BUT, consumers are more apt to check them out due to the Lizard, the Caveman, the money stack and the “I got some terrible news but I just saved 15% on
   my car insurance” routine. It is all about recognition. They, perhaps better than anyone else, are constantly redefining their brand.

2. Tim Manni Says: June 8th, 2009 at 12:32 pm

   Hey Mick,

   Good hearing from you again. You make some great points. You tapped into my original concern over the Nano and it’s potential for success in the U.S. As far as name and brand recognition, this will not only be a new brand, but it’s also an Indian company. Will Americans be willing to purchase an Indian automobile? Americans have had no trouble buying foreign vehicles — our domestic brands are so tainted and poorly run that two just filed for bankruptcy — but, as you pointed out, there’s no association here in the states with Indian products, and furthermore no association India and product reliability.

   That $2,300 price tag will rise likely to somewhere under $10K. But will low cost be enough to attract buyers? Well as you say, without any brand recognition they don’t stand a chance and I’d tend to agree. Beyond brand recognition though, India is going to have to fight for some recognition itself. Unlike Japan, India isn’t known for it’s industrial prowess, so right there, there’s no real motivation for Americans to buy besides the price tag.

   Thanks for commenting, always appreciated,
   Tim

3. Using A Trade Show Video At Your Next Trade Show | Marketing Segmentation Says: June 12th, 2009 at 4:53 pm

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