Tata Nano Company’ New Product Development Essay (Article)

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The case of Tata Nano is truly unique, as it managed to comply with several demands that seemed entirely unattainable. Specifically, the car, which cost a moderately low sum of money, met the quality standards set for much more expensive cars; in addition, the car was promoted successfully in India, where the car market was very small due to the economic issues. However, the project still needs support, which can be provided when taking two denizens of the Indian population.

To be more specific, middle class families and businessmen should be viewed as the key target audience. With the car allowing seating four people and sold for a reasonable price, it can be viewed as a perfect option for families of four or fewer people (Lemley, 2013), as well as businessmen, who would like to save money by purchasing low-price high-quality products. In order to enhance the purchasing process, the organization will need to consider the promotion campaign, which will ensure the target Indian population in the safety of the car and the reasonability of the purchase. In addition, choosing different media tools, i.e., the traditional and the modern ones will help one promote the product to a large amount of the Indian population.

Targeting Segments and Brand Positioning Statements

Though the time elapsed between the emergence of the Baby Boomers generation and the Gen Nester, each of the two displayed entirely unique buying behavior patterns. Segmentation variables for both types include the following items:

Social influence

A closer look at the BB and the GN will reveal that the people, which belonged to each era, differed greatly in terms of the social ideas, which they accepted as a norm. Specifically, BB were comparatively less susceptible to the effects of media on their buying behavior than the GN people (Parment, 2013).

Product choice

While BB preferred to use logics in the process of choosing an item to purchase, GN were clearly guided by emotions when represented with another opportunity for buying a product (Parment, 2013).

Retailer loyalty

Unlike GN, who preferred to switch between retailers in search for a better product, BB were very loyal to a specific retailer (Parment, 2013).

Based on the differences specified above, one may assume that incorporating a more aggressive promotion approach in its marketing strategy, the ReadyMade magazine could have survived the changes in the buyers’ behavior.

Bitter vs. Twitter

To people, who are tired Twitter’s stale interface, Bitter offers not only customizing options, but also an entirely new and user friendly one that will make the conversation process even easier.

Core Market Offerings and Defining the Product

Tropicana was right in making a decision to change its brand logo and update it according to the new standards for proper and tasteful design. What they did wrong was making a major change to the brand (Kirk & Berger, 2011). Indeed, a closer look at the principles of rebranding will show that the changes made to the logo of a well known product require that the image should only be updated and not altered beyond the point of bearing any resemblance to the original. While it would be wrong to assume that people would not be able to appreciate the product for its quality and not for the look of the cover, it would still be much more reasonable to carry out the changes to the logo step by step, thus, altering it only slightly in order to update it.

In addition, as the study shows, the company regrets making the changes mostly because the negative remarks made by the customers and the impressions that the product made spread among the target audience so quickly due to the use of modern media. This begs the question why the company did not choose social media in order to carry out an opinion poll among the TA prior to the change. The latter idea, in fact, invites the opportunity for improving the situation and suggesting customers to participate in another redesign via social media.

New Product Development and the Product Life Cycle

Promoting a new model of a smartphone is not an easy task for a small or medium company in the environment of global economy, as there are a plethora of organizations, which produce similar goods, and several leaders, which attract most of the target market. Therefore, the chances for succeeding are rather low unless a unique proposition is made to the TA and the company brand is promoted in a proper manner.

Consequently, the advantage of the new product must make it stand out of the range of similar brands; specifically, it should concern not additional functions of the device, but, instead, its price (Millward, 2015). By selling the products of the quality that can be compared to that one of the Apple, Inc.’s products, yet several times cheaper, the organization will be capable of gaining a significant amount of loyal customers. Hence, it will be imperative to emphasize in the promotion campaign that the firm offers the highest quality for the lowest price possible. Though obviously not new, the approach in question is bound to work as long as the customers realize that industry giants such as the Apple, Inc., Blackberry, etc. are merely brand names and that they are not worth overpaying for.

Reference List

Kirk, C. P. & Berger, K. A. (2011). Tropicana: Social media teach marketers a branding lesson. Journal of Critical Incidents, 4(1), 108–111. Web.

Lemley, A. (2013). The Tata Nano: The people’s car. Herndon, VA: Strayer University. Web.

Millward, A. (2015). . Techinasia. Web.

Parment, A. (2013). Generation Y vs. Baby Boomers: Shopping behavior, buyer involvement and implications for retailing. Journal of Retailing and Consumer Services, 20(2), 189–199. Web.

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